Dylan Wagemans
SPANISH PM Pedro Sanchez is visiting Canada and Latin America to look for new trade partners, following Trump’s tariffs.
After his visits to both China and Vietnam, it seems that Sanchez has set his sights on the other side of the pond.
He is actively looking for new reliable trade partners, after Donald Trump’s trade war left many countries scrambling to shift their economic strategies.
Madrid sees an opportunity to utilise its historic and linguistic connections with Latin America to create a ‘commercial bridge’ between the EU and the Mercosur countries (Argentina, Brazil, Bolivia, Paraguay, Uruguay), Mexico and Canada.
Sanchez wants to play an active role in the promotion of economic relations between the two continents, amidst the current global economic uncertainties.
The Spanish government has already called on the EU to speed up the ratification of the Mercosur free trade agreement, which would create the largest tariff-free zone in the world.
However, for its entry into force it needs the approval of the European Parliament and 15 countries of the European Union that account for two thirds of the population.
France is a big impediment, since the nation argues that a free trade agreement would negatively affect European agriculture, with many farmers already having protested in many European countries against such an agreement.
In the case of Spain, the studies with which the Ministry of Economy is working with, point to a growth of up to 0.23% of GDP along with the creation of more than 22,000 jobs.
Spanish exports to these countries could increase by 37%, with olive oil, wine, cheese, fruit and vegetables and pork being the sectors that benefit the most.
