EU-Mercosur deal to take provisional effect May 1; limited immediate impact for paper industry seen

Fastmarkets04-08 12:00

The EU-Mercosur trade deal, signed in January, is set to take provisional effect from May 1, 2026, after the European Commission completed its final procedural step.The Commission completed its ...

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limited immediate impact for paper industry seen</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nEU-Mercosur deal to take provisional effect May 1; limited immediate impact for paper industry seen\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-04-08 12:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fastmarkets.com/insights/eu-mercosur-deal-to-take-provisional-effect-may-1-limited-immediate-impact-for-paper-industry-seen/><strong>Fastmarkets</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The EU-Mercosur trade deal, signed in January, is set to take provisional effect from May 1, 2026, after the European Commission completed its final procedural step.The Commission completed its ...</p>\n\n<a href=\"https://www.fastmarkets.com/insights/eu-mercosur-deal-to-take-provisional-effect-may-1-limited-immediate-impact-for-paper-industry-seen/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4585","symbol_name":"ETF&股票定投概念","start_time":0,"source_url":"https://www.fastmarkets.com/insights/eu-mercosur-deal-to-take-provisional-effect-may-1-limited-immediate-impact-for-paper-industry-seen/","article_id":"2625946310","we_media_id":null,"thumbnails":[],"rights":{"source":"fastmarkets_highlight","url":"https://www.fastmarkets.com/insights/eu-mercosur-deal-to-take-provisional-effect-may-1-limited-immediate-impact-for-paper-industry-seen/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2625946310","pubTimestamp":1775620800,"columns":[],"sourceInfo":{"source_id":"fastmarkets_highlight","name":"Fastmarkets"},"weMediaInfo":null,"summary":"The EU-Mercosur trade agreement, set to take provisional effect in 2026, aims to reduce trade barriers between the two regions. However, the deal faces significant opposition from environmental groups and EU agricultural sectors. For the pulp and paper industry, the effects will be phased in over several years, with an analysis by Cepi showing that tariff reductions will be gradual, eventually benefiting about 85% of EU pulp exports and 90% of paper and board exports.","collect":0,"end_time":0,"defaultTopTitle":"fastmarkets.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4585":"ETF&股票定投概念","BK4156":"煤与消费用燃料","ITA":"iShares Dow Jones U.S. Aerospace","BK4588":"碎股"},"translate_title":"EU-南方共同市场协议将于5月1日暂时生效；对造纸行业的直接影响有限","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ITA":1},"content_text":"The EU-Mercosur trade deal, signed in January, is set to take provisional effect from May 1, 2026, after the European Commission completed its final procedural step.The Commission completed its provisional application of the interim trade agreement (ITA), on Monday March 23, by sending its “note verbale” to Paraguay, the formal guardian of the Mercosur treaties.\nThree of the four other Mercosur members have now ratified the broader partnership agreement.\nThe deal, which covers EU member states and Mercosur countries, Argentina, Paraguay, Uruguay, and Brazil, has set goals to reduce trade barriers and increase market access between the two regions.\nWhile the agreement has been welcomed by trade associations promoting free trade, it still faces significant opposition by environmental groups and concerns over agricultural EU competition.\nGradual tariff reductions for pulp and paper products\nFastmarkets spoke to Bernard Lombard, Trade and Industrial Policy Director, Cepi, for insight on which forest products will be affected.\nAccording to analysis by Cepi, the consequences of the EU-Mercosur deal on pulp and paper exports will be phased in over several years rather than taking effect immediately.\nLombard stated that no tariffs on pulp, paper and board products will be removed at entry into force, with most reductions phased in over 4 to 15 years, while some products remain excluded.\nBy the end of the transition period, around 85% of EU pulp exports by volume and 90% of paper and board exports by volume will benefit from tariff elimination. \nConverted paper and board products, however, remain heavily protected, with only 54% of EU exports by value set to be liberalized. Printed products will see the highest level of liberalization, with 93% of EU exports by value expected to gain tariff-free access to Mercosur markets.\nWhile the EU has applied zero import tariffs since 2004 on pulp and paper products, Mercosur countries have maintained their own duties, creating an uneven trading landscape.\nLombard added that given the EU has already removed its import tariffs for more than 20 years, the agreement should not lead to any significant surge in pulp and paper imports from Mercosur countries.\nFastmarkets analyst Rafael Barisauskas commented further on the impact of the deal for European markets. \nBarisauskas said that the agreement does not eliminate tariffs across all products, with reductions applied on a sector-by-sector basis, but it is expected to create incremental demand for packaging materials through increased exports of higher-value goods such as food products, manufactured items and animal proteins. \nWhile Mercosur trade remains largely commodity-focused, European producers, particularly in higher-value sectors like chemicals and processed goods, are likely to witness modest growth in boxboard and containerboard demand over time, rather than a significant market shift.\nTrade deal facing opposition\nThe agreement continues to face significant opposition, particularly from environmental non-government organizations (NGOs) such as Greenpeace, which argue that the EU-Mercosur agreement could undermine the implementation of the European Union Deforestation Regulation (EUDR) while weakening other EU safeguards.\nGreenpeace made a statement, saying the deal “would be particularly harmful for the Amazon rainforest, at a time when the EU’s anti-deforestation law has already been repeatedly delayed and diluted.” \nThe successive delays have intensified scrutiny over whether the EU can effectively uphold its environmental standards while expanding trade ties with Mercosur countries.\nCommenting on the EU’s position on free trade principles, Lombard said that “the provisions of the EUDR have to be met independently, regardless of bilateral trade agreements by operators in the EU and from third countries”.\nConcerns are also linked to the structure of the agreement itself. While it includes a strengthened Trade and Sustainable Development (TSD) chapter committing parties to halt deforestation, criticisms have pointed to the enforcement mechanisms remaining weaker than those applied to core trade provisions.\nHow will the deal affect other commodities?\nThe deal has also faced challenges with political resistance from countries within the EU, including Italy and France, with the main concerns surrounding farming and agricultural groups. \nEuropean farmers have raised concerns that the deal could expose them to lower-cost imports, particularly in beef, poultry, and sugar, where Brazil and Argentina are globally competitive exporters.\nAs previously reported by the Fastmarkets agricultural team, the impact of the EU-Mercosur trade agreement on South American agricultural and biofuel exports to Europe are uncertain and not expected to be very expressive in the near term.\nBut Brazil’s meat exports to the block could be bolstered, as sources told Fastmarkets in the beginning of the year when the deal was approved by the European Union.\nWhile the agreement will not bring major changes to the current situation in terms of tariffs applied over grains and oilseeds, the reduction of tariffs on vegoils and biodiesel are only scheduled to be enforced further down the line, in years seven and 10 of the agreement respectively.\nAs for meat exports, industry associations and analysts believe Brazil could benefit from the deal by both increasing the volume and unit value of its exports into the block.\nThe deal is further expected to have limited immediate impact on the grains and oilseeds sector, because existing trade flows are already well established and driven primarily by price and quality rather than tariffs.\nArgentina has supplied around 55% of EU corn imports over the past five years, while Brazil accounts for roughly half of soybean imports, according to European Commission data.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.40.0","shortVersion":"4.40.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2625946310","isCrawlerRequest":true}