The greatest impact of the reduction of tariffs on the European Union (EU) for imports into the MERCOSUR (Argentina, Brazil, Paraguay and Uruguay) will be for the cheese and infant formulas. The implementation of such AGREEMENT it would take 2 years to be validated by the parliaments of the countries involved, and then, for the MERCOSUR, envisages a gradual reduction of tariffs over 10 years to get from the current 28% to 0% duty for the established fees. Also increases to be phased in the volume of import from EU (10% per annum of the total fee of the Agreement) until you get in 10 years, the total= 10,000 tonnes of powdered milk, 30,000 tons of cheese and 5,000 tonnes of infant formula. In the next chart, we look at the scope of the Agreement having been completed within 10 years for the total implementation and considering the total odds possible to import from the EU to Mercosur contrasted with the volumes of current import of Mercosur. Basically Argentina will be in the next decade with the european competition for our main export destination: Brazil (35% of our exports in the last 12 months). It has quite a few years to reduce internal costs (mostly taxes and withholdings) that will give you the competitiveness of local production to meet this moment, as well as discover what milk could be sold to Europe. Also subtraction analysis of treatment of subsidies and "non-reimbursable funding" as well as the products excluded in the list D. O. P. (more than 30 cheese in the list of Protected Designation of Origin) of the Geographical Indications (we understand that the names Parmesan, Reggianito, Grouyere, Fontina, and Mozzarella inscribed with a date prior to November 2012, may continue in use). It is important to note that this Agreement will trigger other bilateral agreements with countries such as Mexico, Japan, the united States, etc
