July 03, 2019
Gustavo Grobocopatel said that the agreement with the EU forces Mercosur to be competitive
These treaties "do not have to look at what sectors benefit or harm, we must look at them in the key that changes the direction of the ship, towards a direction of progress" for which "we will have to do a lot of things" to achieve the success.

The president of Grupo Los Grobo Gustavo Grobocopatel said that "the Mercosur agreement with the European Union requires reforms to be competitive", while a report from the consulting firm Moody's affirms that Uruguay and Paraguay will benefit over Argentina and Brazil.

When analyzing the agreement reached between both blocks, the businessman and producer said that it is a "national, for the whole world" agreement. "We live in a system characterized by globalization whose success and progress is linked to integration" with other countries. "In other words, countries exchange things, flows of goods, services, capital, investments and knowledge".

Agreements such as this "facilitate these flows", and "if one is prepared and has the best conditions, it can create progress, reduce poverty, have inclusion, etc." What the treaty does is "generate the conditions so that in a of ten or fifteen years "the countries involved" will converge in this case towards Europe "but also" towards other countries with which they can make different types of treaties ".

Thus "investments increase, the flow of knowledge increases work". But "it is not that one stays without doing anything and this happens in any way. No, it is required (that countries) make a series of reforms to be competitive, for example tax or the State, "he said referring to Argentina.

Asked about European and Argentine cheeses, the latter with a high tax burden which leaves them out of competition, Grobocopatel said that tax burden "will have to be lowered, and macroeconomic stability will have to be generated, the quality of the State improved, reforms in education, retirement, "etc .; "A series of reforms to stop creating poverty".

Treaties such as Mercosur with the EU "do not have to look at what sectors benefit or harm, we must look at them in the key of changing the direction of the ship, towards a direction of progress" for which "we are going to have to make a Lots of things "to achieve success, he said.


Regarding the attitude of politicians and the policy on this type of agreements, the businessman said that this is "a matter of State" and recalled that Néstor Kirchner and Cristina Fernández negotiated with the European Union when they were government, so to oppose now "would be a contradiction".

As for the clauses of the agreement, "I get the impression that they are quite flexible" because "there are many years to adapt the industry, there are many years to transform the State. If in ten or fifteen years we can not make a competitive country, that is a problem more ours that of the treaty ", he defined.

He stressed the importance of the local industry "being competitive against the European" because we will be able to export and import more freely.

That is why "if in ten years (in Argentina) we do not fix" the internal challenges and problems "we will have a more serious problem than the one with the European Union", with a country "with 60 or 70% of poverty".


The rating agency Moody's Investors Service published a document in which it affirms that the Mercosur EU agreement will give "greater competitiveness" to the Mercosur countries.

The senior analyst of the rating agency Samar Maziad said that within Mercosur "Uruguay and Paraguay will benefit most from the agreement, given that they are open and small economies".

On Argentina and Brazil that carry the bulk of the block said that it is expected "that the economic benefits will be important but proportionally lower and that the macroeconomic prospects will continue to be dominated by domestic events," he added.

With its own information and National Radio 870 (program Thousand Graces) in which Grobocopatel expressed the concepts indicated. (Uruguay)

Automatic translation from spanish.

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