Nicosia, Cyprus. Commerce and Trade Minister Michael Damianos said the trade deal signed between the European Union and South American bloc Mercosur will bring greater stability for Cyprus and its farmers. He said it would deliver benefits for trade and services amid increased international uncertainties.
Supply security and price stability
Damianos told the Sunday Mail that the agreement creates clear and substantial benefits for the Republic of Cyprus in trade and services. He said it would strengthen Cyprus’ security of supply for critical raw materials, noting that almost all imported soybeans come from Argentina and that a significant part of coffee and fruit juice imports come from Brazil.
He said reducing or eliminating tariffs and establishing predictable rules would ensure greater price stability and better conditions for Cypriot farmers, livestock breeders, and consumers.
Export opportunities for Cypriot products
Damianos said the agreement would create new prospects for exports of Cypriot products and services through the abolition of export tariffs on products sent from Cyprus to South America. He cited the existing 28 percent tariff on cheese products, saying its forthcoming abolition could open new markets for Cypriot dairy producers.
He also referred to Cyprus’ pharmaceutical products industry, saying eased trade between Europe and South America may open avenues for exports of pharmaceutical products from Cyprus to Mercosur states in the medium term.
Maritime services and economic resilience
Damianos said the inclusion of substantive provisions for maritime services was of particular importance, describing Cyprus’ maritime services sector as one of the most strategic sectors of the economy.
He added that the agreement would diversify the European Union’s markets and trading partners, strengthen the resilience of the Cypriot economy, and create new development opportunities.
How do you think the EU-Mercosur agreement could affect prices and export opportunities for Cyprus in the coming years?
