Cepi Supports EU-Mercosur Agreement to Correct 20-Year Trade Imbalance

PAPER INDUSTRY NEWS

Jino John

1/20/20261 min read

While the EU-Mercosur agreement faces criticism in Paris and Brussels for potentially harming agriculture against South American output, it holds benefits for other sectors, including the graphic arts industry. The Confederation of European Paper Industries (Cepi) describes it as "the most important formal trade agreement ever concluded by the EU." In a press release, Cepi welcomes the removal of tariff barriers, which will ease European exports of pulp, paper, board, and related products to South America, urging the European Parliament to ratify the partnership. The agreement eliminates customs duties on over 90% of goods traded between the EU and Mercosur countries, covering 85% of pulp and 90% of European paper and cardboard exports to Mercosur. Cepi argues this rebalances a longstanding imbalance: since 2004, the EU has removed import duties on pulp, paper, board, and related items from Mercosur, while those countries impose high duties on EU exports. Europe remains a net exporter of high-quality paper and board globally but imports significant market pulp from Mercosur as a key raw material. With EU tariffs already eliminated, the deal should not increase pulp and paper imports from Mercosur. The agreement arrives amid tighter EU-US trade. Cepi praises the legally binding Trade and Sustainable Development chapter, committing to halt deforestation and enhance sustainable supply chain cooperation. These must be rigorously enforced to uphold environmental and social standards. "The European pulp and paper industry believes in the principles of free trade and fair competition, but not only that. We do not compromise on our sustainability principles and prefer to trade and compete with players who respect the same climate, environmental and social rules as we do," states Cepi General Manager Jori Ringman