German industry is calling for the EU free trade agreement with the four South American countries in Mercosur to be finalized as soon as possible to help Germany's weakening export trade.
"From the point of view of many German companies, the EU should ...quickly agree on an ambitious trade agreement with Mercosur and thus set positive growth impulses for our economy," the German Chamber of Industry and Commerce's (DIHK) chief executive Martin Wansleben said in a statement released on Friday.
"Around 85% of European exports to Mercosur are burdened with customs duties, which means annual costs of €4 billion ($4.3 billion) for companies."
The EU has been negotiating a trade agreement with the Mercosur states of Brazil, Argentina, Paraguay and Uruguay for over two decades. It is primarily intended to reduce tariffs and thus boost trade, but has been on hold since 2019.
On Wednesday French President Emmanuel Macron rejected the agreement in its current form. Among other things, it has been criticized for the feared weakening of labour and environmental standards.
Wansleben said that export-orientated German companies could not afford decades of negotiations. "China, for example, has long been doing things the right way on the continent of opportunity that is South America."
In addition to providing impetus for European foreign trade, the region could also become an important partner for the supply of raw materials, he said.