The relationships between the European Union (EU) and Latin America and the Caribbean (LAC) are based on historical-cultural values that have evolved towards a fluid trade and investment exchange and with potential for expansion and deepening. The study aims to identify the current situation of trade and investment relationships between the EU and LAC, disaggregating the analysis at the level of the Mercosur subregion (MCS), to analyze the trade pillar of the agreement closed on 28.06.2019 and diagnose aspects of its potential impact on the agro-industrial o agri-food sector. The applied methodology follows a normative and positive approach, supported by the latest statistical information available. The results show that the trade relationship between the EU and LAC places the EU, in general, as a third trading partner, and it is characterized by an asymmetric exchange. The MCSsubregion exports to EU primary products and manufactures based onnatural resources and imports from EU medium and high technologymanufactures. In terms of investment, the EU is the main investor in LAC. The EU-MCS agreement was closed and it is in the process of legal review. The economic-commercial chapter may entry into force independent of the rest of the agreement. Specifically for agricultural products, it provides that the EU grants preferential access to 99% of trade with MCS, with tariff elimination for 84% of imports and for the rest quotas or fixed preferences; and MCS will release 88% of imports. As main final considerations, the following stand out: the parties may not maintain, introduce or reintroduce subsidies -or other measures withequivalent effect- to exports on an agricultural product that is exportedor incorporated in a product that is exported; the environmental aspectis foreseen in the chapter of the agreement referring to trade andsustainable development and, through dialogue, it may be evaluated how to improve it.
