Lower thirds:

00:02 Report by / Wolfgang Bernert
00:27 Carlos Pedretti / Ganadera Amanecer
01:24 Wolfgang Weber / ZVEI German Electrical and Digital Industries Association
02:08 Christopher Podgorski / CEO of Scania Latin America
02:58 Marcelo Lizziero / Cabaña Piedras Blancas

Script:

The Mercosur bloc is a major exporter of beef. However, under the new trade deal between the EU and the 4 Mercosur countries Argentina, Brasil, Paraguay and Urugay, there will be a set quota on how much beef can enter the EU - that's set at an additional 99,000 tons per year. 
Despite this, a cattle farmer in Paraguay - one part of the Mercosur bloc - praises the agreement. 

0:23 
+++SOT Carlos Pedretti, Ganadera Amanecer+++
"It's an agreement that will benefit both Mercosur and the European Union, because of course Mercosur won't be the only country selling meat. The European Union will sell a range of products to Mercosur duty-free."

+++GRAFIK REIN+++
An analysis from the European Commission shows that the auto industry will benefit the most from the trade deal, followed by the mechanical engieneering sector and the chemical industry. The increase in these sectors is projected to reach 48.7 billion Euros by 2040. The volume of fish and agricultural products coming in from the Mercosur countries are expected to grow. The analysis also predicts substantial growth in chemical products leaving the EU. Overall, exports from the Mercosur countries are projected to increase by almost 9 billion euros by the year 2040.
+++GAFIK RAUS+++

German companies are largely optimistic about this trade agreement.

+++SOT Wolfgang Weber, German Electrical and Digital Industries Association+++
"Free trade agreements are very important for European manufacturers. On the one hand, they expand the market in which they can operate. They also increase competitive pressure, which is good for companies to be better. At the same time, they also help diversify supply chains."

Across the Atlantic ocean, in northwestern Argentina, truck manufacturer Scania produces hundreds of parts here to be exported to Sweden, Brazil and the USA. With the new trade agreement, they're optimistic.

2.11 
+++SOT Christopher Podgorski, CEO of Scania Latin America+++
"Local suppliers are already prepared to meet safety and emissions regulations - something new competitors would have to invest in. Everything is a potential risk. But it's also an opportunity."

Tariff rates between the EU and Mercosur will continue to drop over the next few years. Mercosur producers are particularly concerned about competition in the dairy sector. Tariffs on European cheese - which are at 28 per cent now, are being phased out.

Veterinarian Marcelo Lizziero raises goats near Buenos Aires. He makes French-style cheese, blending goat's milk with cow's milk.

0.31 
+++SOT Marcelo Lizziero, Cabaña Piedras Blancas+++
"For us, this means uncertainty and, in a way, fear, knowing that the tariff on imported products will eventually drop to zero. We have ten years to prepare for that."

Lizziero hopes that Argentina will lower their domestic taxes so that his products can compete with cheese from France or Germany.

END