Current Mercosur agreement is a lose-lose situation, according to François Kalfon

During an interview, the French socialist MEP François Kalfon, expresses his concerns about the interrelation between EU and countries which take part of the Mercosur agreement. But a new type of commercial relationship is possible.

What is it all about

The Southern Common Market, or MERCOSUR, is a regional integration process initially established by Argentina, Brazil, Paraguay, and Uruguay. Later, Venezuela and Bolivia joined the bloc, expanding its scope and influence across South America. Over the years, MERCOSUR has served as a framework for trade and economic cooperation among its member states, aiming to promote growth and stability in the region.

However, according to MEP Kalfon, the current MERCOSUR agreement is no longer fit for purpose. He argues that the agreement, in its present form, is an “ancient” framework that has failed to adapt to the evolving realities of the global economy. Specifically, it does not adequately address the challenges posed by “free competition” or the lasting impact of the Covid-19 pandemic. These omissions, Kalfon believes, have rendered the agreement ineffective in promoting equitable and sustainable economic development for all parties involved.

Kalfon emphasizes that the agreement needs significant reform to remain relevant. “We can transition from a lose-lose agreement to a win-win situation,” he asserts, “by putting people at the center of the process, not just industries.” He advocates for a more transparent method of negotiation within the European Commission to ensure the agreement addresses the concerns of all stakeholders, including workers, businesses, and citizens.

The MEP’s concerns stem from his broader perspective on economic and industrial policies, particularly the role of transportation in shaping competitiveness. As a member of the Transport Committee in the European Parliament, Kalfon underscores the critical importance of efficient transport systems for European industries. “Competition also depends on transport,” he notes, highlighting how robust transportation networks are essential for connecting markets, reducing costs, and fostering innovation.

To ensure that the EU remains competitive in the global market, Kalfon calls for a “revision of the sovereignty of transport.” By addressing issues such as infrastructure development, logistical efficiency, and cross-border cooperation, he believes the EU can create a more accessible and sustainable framework for the coming years. Such efforts, he suggests, are crucial for enhancing both the economic and social dimensions of regional agreements like MERCOSUR.

In sum, Kalfon’s critique of the MERCOSUR agreement reflects his broader commitment to reforming outdated frameworks and ensuring that economic policies are both people-centered and forward-looking. By addressing the flaws in the current agreement and prioritizing transparency, inclusivity, and innovation, he envisions a future where regional integration serves as a true driver of progress for all.