Uruguay's Ministry of Economy and Finance published an initial assessment of the Interim Trade Agreement between Mercosur and the European Union (EU), showing increased bilateral trade but limited use of its preferences. Consolidated data cover May through September, the first five months of implementation, a period too short to assess the agreement's structural impact. Goods exports to the EU reached USD 860 million, up 12% from the same period a year earlier, while Uruguay's total exports fell 1.5%. Exports using the agreement's preferences totaled USD 38 million. Of exports using those preferences, 54% by value entered through quotas for chilled beef, frozen beef, rice and honey. The remaining 46% used direct preferential access, led by citrus fruit, followed by fish and horse meat. Some major exports do not use the agreement because they already face zero tariffs, as with pulp, or enter through other preferential arrangements, including World Trade Organization quotas for beef. Nevertheless, the agreement reduced the tariff within the Hilton beef quota from 20% to zero. The range of goods using the agreement has begun to expand, with transactions recorded for orange juice, fresh blueberries and bakery products. Imports from the EU reached almost USD 740 million over the same five months, up 6% from a year earlier. Imports benefiting from the agreement totaled USD 38 million, including just over USD 1.5 million entering under quotas. Applications have been received for all quotas granted to the EU except cocoa powder, but use varies. Canned tomatoes stand out by volume, while the milk powder quota remains unused despite some applications.

Original source