HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 6 December. US Manufacturing PMI for November improves but remains in contraction The ISM US Manufacturing Purchasing Managers’ Index (PMI) improved to 48.4 in November – up 1.9 points from 46.5 in October, but remains in contraction (below 50) for the eighth consecutive month, and 24 out of the last 25 months. INSIGHT: Brazil chems producers upbeat as cabinet on side, but serious competitive woes remain The mood this week at Brazil’s chemicals producers trade group Abiquim’s annual meeting was notably more upbeat than a year ago, when imports into Brazil were increasingly eating into their market share. US Nov auto sales rise but could face headwinds from tariffs US November sales of new light vehicles ticked higher from the previous month and rose compared with the same month a year ago, but proposed tariffs on Mexican and Canadian imports by President-elect Donald Trump could create further headwinds for the industry. INSIGHT: 2024’s relative stability in key commodity pricing a contrast to previous US election years Heading into 2025, there are a plethora of factors which chemical markets players are tracking to see what could impact pricing and fundamentals, but key among them is the arrival of a new US President. Braskem’s new CEO appoints a leaner board as Novonor’s stake could be closer to sale Braskem’s new CEO Roberto Prisco has reshuffled the company’s board, including the CFO position, and has made it leaner with nine members, down from 12, the Brazilian polymers major said late on Wednesday. INSIGHT: Global plastics plan pushed down the road, production remains in the spotlight With the idea of a global binding accord on how to handle plastics waste kicked back into the long grass for now, negotiations have progressed but the key points of disagreement still seem fairly intractable. SHIPPING: Asia-US container rates fall, but average global rates rise as possible port strike nears Rates for shipping containers from east Asia and China to the US were flat to softer this week while global average rates rose by 6%, but the looming strike at US Gulf and East Coast ports could put upward pressure on rates in the coming week.

SAO PAULO (ICIS)–EU and Mercosur chemicals will greatly benefit from trade without barriers as per their free trade agreement (FTA) which will also encourage much-needed research and development (R&D) in new technologies for greener chemicals, Brazil’s chemicals producers’ trade group Abiquim said. In a written response to ICIS, Abiquim welcomed the agreement announced last week by the EU and Mercosur for a free trade deal which would cover more than 700 million consumers in 32 countries (27 states in the EU, five in Mercosur). After 25 years in the making, the two blocs finalized a deal on 6 December. The EU-wide chemicals trade group Cefic also welcomed the FTA, which still must be ratified by EU member states as well as some EU bodies. The deal’s implementation is not 100% guaranteed, given the many scars the FTA’s text has left in some EU countries. Opposition in France is rife and is coming from all political sides, as the major agricultural producer in the European bloc fears its farmers will be hit hard by their Mercosur’s peers more competitive production. “The conclusion of the partnership agreement between the EU and Mercosur is excellent news for Brazil and the chemical industry. After many back-and-forths, the final text reaches a balanced agreement in terms of market access and modernity, incorporating concepts of sustainability, phytosanitary standards, or intellectual property, among others,” said the trade group. Abiquim added the current Brazilian government of Luiz Inacio Lula da Silva had been able to turn the “aspects of sustainable development as an advantage” for the country’s negotiating position, compared with other EU countries, a factor which it said would open the door to investment opportunities in the green economy. Lula’s cabinet, in office since January 2023, has been able to reduce deforestation rates, which increased sharply under the leadership of former President Jair Bolsonaro. Lula, in his first and second terms as president (2003-2011) also reduced deforestation. This factor often came up in the final stretches of the EU-Mercosur agreement, with Lula arguing it was Brazil who was ahead in sustainability. NEW MATERIALS, NEW CHEMICALSAbiquim’s director general, Andre Passos, said the deal would not only ease trade between the two blocks by eliminating or sharply reducing import tariffs and other trade barriers, but would also prop up R&D in greener raw materials to produce chemicals. “Of special interest to the chemical sector is the focus sustainable development aiming to foster the integration of production chains towards the decarbonization of the economy. This will pave the way for R&D in new production technologies and the implementation of low-carbon productive investments,” said Passos. “[This will be] In addition to encouraging the granting of favorable treatment for foreign trade of sustainable Brazilian products in accessing the EU’s single market.” Thumbnail photo: Flags flying during European Commission talks on the Mercosur deal (Source: Wiktor Dabkowski/ZUMA Press Wire/Shutterstock)

SAO PAULO (ICIS)–Brazil’s petrochemical industry needs to implement a deep restructuring if it wants to regain global competitiveness, and it can do this by shifting to renewable raw materials and increased use of natural gas, according to the CEO of Bahia state public company Bahiainveste. Paulo Guimaraes was appointed CEO of Bahiainveste and is tasked with attracting investment to Bahia state – home to Camacari, one of the country’s biggest chemical production hubs. Bahiainveste, which was founded in 2015, falls under the umbrella of Bahia’s Secretariat for Economic Development, and functions as a public company with its own assets and revenues, as well as budgetary and financial autonomy. Guimaraes spoke to ICIS on the sidelines of the annual summit of the chemicals trade group Abiquim earlier in December. Although the mood at the gathering was more positive than in 2023, Guimaraes said it was best not to be complacent despite recent successes for chemicals producers in Brazil. The most significant of these has been higher import tariffs. In effect since October, they will help domestic producers increase market share. However, Brazil’s lack of competitiveness in the sector run deeper, and it should address them immediately rather than rest on its laurels, Guimaraes added. Although it may sound like an impossible task, Guimaraes said Brazil can and should compete against the US, the Middle East and China, who have sharply  increased their exports to Brazil during the last two years, hitting domestic producers’ market share. RENEWABLE FEEDSTOCKSTo turn the situation around, Guimaraes said a chemical transformation is necessary for Bahia, where the sector has faced falling competitiveness and job losses over the past two decades due to outdated facilities and a lack of modernization. “We need to look at the possibility of renewable raw materials. Within the next three years, Bahia will become an exporter of ethanol, so we will have the capacity to supply the industry with this type of raw material, for example,” said Guimaraes. The executive highlighted how Brazil’s chemical industry has historically underinvested in technological innovation, focusing instead on basic petrochemicals. This strategy has left the sector vulnerable to international competition, particularly from Asia, and in the case of ethanol this is telling, he noted. “Brazil was the one who created ethanol as an automotive fuel in the late 1970s and early 1980s, but today we are producing ethanol using a technology imported from the US, because we did not understand that we needed to continue to develop the technology,” he said. “This is a recurrent Brazilian feature, and we need to change it.” DOMINANT PLAYERGuimaraes went on to reflect on the dominance of polymers major Braskem, which emerged from a consolidation of several companies in the early 2000s and is in part owned by Petrobras, the state-owned energy major. These factors have resulted in Braskem – Brazil and Latin America’s largest chemical company – to be key in shaping industry development. The company’s virtual monopoly in basic petrochemicals has influenced investment patterns across the sector, said Guimaraes. The US and Brazil are the Americas’ two largest chemicals producers. In the former, a significant shift occurred in 2004 when chemicals producers began utilizing shale gas, making natural gas-based chemistry more competitive than traditional crude oil-derived, naphtha-based processes. Brazil failed to adapt its industrial strategy accordingly. Moreover, the Brazilian chemical sector’s challenges are further complicated by the country’s energy policies. Following an energy crisis in 2001, the government implemented an emergency thermoelectric program that prioritized gas use for electricity generation over industrial applications. “Natural gas began to rise in price because Petrobras began to see it as just another product that needed to be as profitable as oil. And it stopped being used as a lever for the country’s growth,” said Guimaraes. DUMPING CONCERNSGuimaraes said growing protectionist moves around the world will only increase further over the coming years as countries face significant concerns about dumping practices which have affected their manufacturing sectors, chemicals included. Guimaraes said the tire industry was a good example. “Today, the tires that are entering Brazil are entering at a price lower than the price of the raw material. And the raw material is a commodity,” he said. He noted that domestic Brazilian tire production has fallen between 40-60%, and this occurred even though Brazilian manufacturers use 70% clean energy in their production processes, which in theory should have given them an edge in a world increasingly worried about climate change. The threat of climate change could also give way to opportunities of a new, green industry. Looking ahead, Guimaraes said he can envisage significant opportunities in green hydrogen and sustainable aviation fuel (SAF) production in Brazil. However, once again, he advocated for domestic value addition rather than raw material exports. “Producing hydrogen and exporting hydrogen is like exporting water, wind and sun. Brazil should instead focus on manufacturing finished products using those resources. For instance, rather than exporting hydrogen and iron ore separately, we could produce green steel domestically instead,” said Guimaraes. “We have the advantages of a country where renewable energy production is easy, and we have plenty of available land for non-food crops: we would be able to plant crops to produce chemical feedstocks without competing with food production. “For example: I plant corn, and from the corn I produce ethanol and animal feed. What is the energy I use for this? CO2 or the biomass that the cattle generate. So, the animal feed would feed the cattle that would feed this energy.” Front page picture: Bahia’s Camacari petrochemicals hub Picture source: Camacari Town Hall (Camara Municipal de Camacari) Interview article by Jonathan Lopez

LONDON (ICIS)–Click here to see the latest blog post on Chemicals & The Economy by Paul Hodges, which looks at the political turmoil developing in the EU’s key economies, Germany and France. Editor’s note: This blog post is an opinion piece. The views expressed are those of the author and do not necessarily represent those of ICIS. Paul Hodges is the chairman of consultants New Normal Consulting.

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 6 December. INSIGHT: Global plastics plan pushed down the road, production remains in the spotlight With the idea of a global binding accord on how to handle plastics waste kicked back into the long grass for now, negotiations have progressed but the key points of disagreement still seem fairly intractable. 2024’s relative stability in key commodity pricing a contrast to previous US election years Heading into 2025, there are a plethora of factors which chemical markets players are tracking to see what could impact pricing and fundamentals, but key among them is the arrival of a new US President. Eurozone economy contracts as chemicals operating rates plunge; outlook grim The eurozone economy has started to contract again according to the latest composite purchasing manager index (PMI), while regional chemical industry operating rates continue to fall sharply. GPCA ’24: Lack of recycling root cause of plastics pollution, Dow says Dow has attributed problems with plastics pollution to a lack of plastics recycling and not production, the US producer’s chair and CEO said at the 18th Annual Gulf Petrochemicals and Chemicals Association (GPCA). UPDATE: GPCA ’24: Bahrain to host 2025 GPCA Forum Manama, the capital of Bahrain, will host the 19th Annual Gulf Petrochemicals and Chemicals Association (GPCA) Forum on 8-11 December 2025, according to GPCA promotional material seen by ICIS.

SINGAPORE (ICIS)–South Korea’s benchmark stock market index continued to bleed on Monday amid political instability wrought by the shock martial law announcement on 3 December, with impeachment motions against President Yoon Suk Yeol dropped over the weekend due to lack of quorum. KOSPI composite index falls for fourth session Petrochemical shares tumble along; Nov exports fall 5.6% year on year Yoon may be stripped of presidential powers At the close of trade on Monday, the KOSPI composite index shed 67.58 points or 2.78% at 2,360.58, with shares of major petrochemical companies slumping. The Korean won also weakened sharply against the US dollar. The pair was trading W1,437.27 as of 07:04 GMT. When martial law was declared late on 3 December, the won tumbled to a near two-year low above W1,440 levels versus the greenback. PETROCHEMICAL EXPORTS FALLINGSouth Korea is a major exporter of ethylene, as well as aromatics, such as benzene, toluene and styrene monomer (SM). The overall industry is reeling from a combination of weak external demand and overcapacity in China. South Korean industries, including chemicals, rely heavily on exports to China, whose self-sufficiency has grown over the years. In November, South Korea’s petrochemical exports declined by 5.6% year on year to $3.6 billion. In the first 11 months of 2024, however, its petrochemical export volume increased by 7.5% year on year, the Ministry of Trade, Industry and Energy (MOTIE) said on 5 December. Market players said that port operations in Daesan have been unsteady because of strong winds, causing delays in cargo deliveries. “Petrochemical exports are facing difficulties due to unforeseen factors such as falling product prices linked to oil prices and bad weather,” the first vice minister of MOTIE Park Sung-taek said after a recent visit to the refinery of Hyundai OIlbank and the production/export site of Hyundai Chemical. For Hyundai Oilbank, the arrival of five carriers and three crude oil import vessels were delayed because of inclement weather in late November, while delays also hit shipment of five product carriers of Hyundai Chemical, MOTIE noted. “In order to prevent disruptions in exports, we will diversify the types of oil reserves from the existing heavy crude oil to light crude oil in consideration of the types of oil used by each refinery, and greatly simplify the oil reserve lending process so that companies can quickly provide oil reserves when necessary,” Park said. EMERGENCY MEETINGS OF FINANCIAL REGULATORS CONTINUEThe economic managers of Asia’s fourth-largest economy – led by Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok – have been holding daily emergency meetings before markets open to ensure financial markets stability, keeping their promise to provide “unlimited liquidity”. “The participants agreed that, as domestic and international uncertainties still persist, relevant organizations should maintain a closer emergency cooperation and response system and mobilize all capabilities to respond in order to minimize the economic impact of the political situation. In a statement on Monday, the Ministry of Economy and Finance said that “as domestic and international uncertainties still persist, relevant organizations should maintain a closer emergency cooperation and response system and mobilize all capabilities to respond in order to minimize the economic impact of the political situation”. South Korea intends to activate a market stabilization fund worth won (W) 40 trillion ($28 billion) following the country’s brief dalliance with martial law, with its slowing economy facing the prospect of increased US tariffs in 2025. For the stock market, the MOEF said that W30 billion of the value-up fund “has already been invested”, with W70 billion to be injected this week, with another W30 billion scheduled to be implemented sequentially. YOON SURVIVES IMPEACHMENT BUT MAY BE STRIPPED OF POWERSBecause of lack of quorum, South Korean President Yoon managed to survive impeachment on 7 December, which was set into motion following his declaration of a six-hour long martial law that disrupted markets. “The impeachment vote failed to gain the 200-vote hurdle needed to suspend the president from duties,” Singapore-based UOB Global Economics & Markets Research said in a note on Monday. “The opposition bloc needed only eight votes from the ruling PPP [People Power Party] to impeach Yoon as votes by three PPP members had prompted protesters outside the National Assembly to chant “five more to go,” it said. On 8 December, PPP leader Han Dong-hoon said that Prime Minister Han Duck-soo will manage the nation’s affairs as an exit plan for Yoon is being prepared, the constitutionality of which is being questioned by the opposition Democratic Party of Korea (DPK). Focus article by Pearl Bantillo Additional reporting by Jonathan Yee Thumbnail image: Lawmakers in the voting chamber during the plenary session for the impeachment vote of President Yoon Suk Yeol at the National Assembly in Seoul, South Korea on 7 December 2024.(JEON HEON-KYUN/POOL/EPA-EFE/Shutterstock)

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 6 December 2024. India cuts banks’ cash reserves ratio by 50bps; lowers full-year GDP forecast By Priya Jestin 06-Dec-24 17:51 MUMBAI (ICIS)–India’s central bank on Friday maintained its benchmark interest rate at 6.5% but cut its cash reserve ratio (CRR) by 50 basis points to 4%, in a bid to improve growth and rein in high inflation. Mideast PMDI, TDI fall on weak demand amid high freight costs By Isaac Tan 06-Dec-24 15:24 SINGAPORE (ICIS)–Prices for both polymeric methylene diphenyl diisocyanate (PMDI) and toluene diisocyanate (TDI) in the Middle East have decreased this week, reflecting a general slowdown in demand as the year comes to a close. GPCA ’24: Europe chemical industry faces price pressure from US tariffs on ChinaBy Jonathan Yee 05-Dec-24 19:15 MUSCAT (ICIS)–An incoming Trump administration in the US and the promise of tariffs on all foreign goods will likely upend the global world order, placing pressure on the European chemical industry amid ensuing price volatility, senior industry figures warned this week. S Korea prepares $28 billion market stabilization fund after martial law By Pearl Bantillo 05-Dec-24 15:28 SINGAPORE (ICIS)–South Korea is preparing to activate a market stabilization fund worth won (W) 40 trillion ($28 billion) following the country’s brief dalliance with martial law, with its slowing economy facing the prospect of increased US tariffs in 2025. UPDATE: Indonesia begins antidumping probe on PP homopolymers By Jackie Wong 05-Dec-24 15:12 SINGAPORE (ICIS)–Indonesia has initiated an antidumping investigation on imported polypropylene (PP) homopolymer products, according to a government document obtained by ICIS on Thursday. INSIGHT: GPCA ’24: GCC petrochemical players sharpen focus on longer-term sustainable growth By Nurluqman Suratman 04-Dec-24 19:33 MUSCAT (ICIS)–Gulf Cooperation Council (GCC) petrochemical executives met with global colleagues in Muscat, Oman, this week as the focus on sustainable growth continues to sharpen amid concerns over oversupply, trade protectionism and geopolitical conflicts. INSIGHT: Political instability rocks South Korea after martial law; no petrochemical impact so far By Pearl Bantillo 04-Dec-24 19:06 SINGAPORE (ICIS)–Days before the shock declaration of martial law in South Korea by President Yoon Suk-yeol, political wranglings stalled the 2025 budget deliberations of Asia’s fourth-biggest economy. GPCA ’24: Thailand’s PTTGC to start SAF production in early 2025 – CEO By Nurluqman Suratman 04-Dec-24 18:00 MUSCAT (ICIS)–Thailand’s PTT Global Chemical (PTTGC) is expected to begin producing sustainable aviation fuel (SAF) at its refinery in Map Ta Phut early next year, the company’s CEO Narongsak Jivakanun said. S Korea President Yoon may face impeachment after short-lived martial law By Pearl Bantillo 04-Dec-24 14:07 SINGAPORE (ICIS)–Calls for South Korean President Yoon Suk Yeol to resign are growing after his hours’ long martial law that rattled the country’s equities and foreign exchange markets. GPCA ’24: INSIGHT: Middle East PP has leading global competitive position By Emiliano Basualto 02-Dec-24 13:00 MUSCAT (ICIS)–The Middle Eastern polyolefin industry has always been recognised for its competitive advantages, particularly driven by access to inexpensive raw materials and low energy costs. GPCA ’24: GCC needs to formulate right partnerships – GPCA chief By Nurluqman Suratman 02-Dec-24 09:59 MUSCAT (ICIS)–Gulf Cooperation Council (GCC) petrochemical players must formulate strategic international partnerships and invest in optimization and innovation to remain competitive, according to the secretary general of the Gulf Petrochemicals and Chemicals Association (GPCA).

HOUSTON (ICIS)–Rates for shipping containers from east Asia and China to the US were flat to softer this week while global average rates rose by 6%, but the looming strike at US Gulf and East Coast ports could put upward pressure on rates in the coming week. Rates from supply chain advisors Drewry showed Shanghai-New York rates fell slightly to $5,160 from $5,182, while rates from Shanghai to Los Angeles plunged by more than 12%, as shown in the following chart. The previous chart also shows the sharp increases in rates from Shanghai to Rotterdam and Genoa, which contributed to the global average increase as shown in the following chart. Drewry expects an increase in rates on the Transpacific trade in the coming week due to the looming ILA (International Longshoremen’s Association) port strike in January 2025 and the anticipated rush to ship goods before the strike begins. The 15 January deadline for finalizing a new labor agreement between unionized dock workers at US Gulf and East Coast ports and the negotiating entity for the ports is nearing with no clear progress on a key remaining issue – automation. Rates at online freight shipping marketplace and platform provider Freightos showed a sharp increase on the Asia-NY trade lane and a 4% decrease from Asia-LA. Rates at Freightos are higher than rates at Drewry. Judah Levine, head of research at Freightos, said the increases on Asia-NY are because of importers again frontloading shipments ahead of a possible strike and to beat tariffs proposed by the incoming Trump administration. Some carriers have already begun introducing general rate increases (GRIs) to try and push rates higher. Levine said the window to move shipments from the East Coast to the West Coast ahead of a possible strike is closing, but many retailers are sitting on significant inventories from pulling forward shipments ahead of the original 1 October strike deadline. “These factors may make early December rate increases difficult to sustain, though prices could increase later in the month or early in January ahead of Lunar New Year,” Levine said. Container ships and costs for shipping containers are relevant to the chemical industry because while most chemicals are liquids and are shipped in tankers, container ships transport polymers, such as polyethylene (PE) and polypropylene (PP), are shipped in pellets. They also transport liquid chemicals in isotanks. LIQUID TANKER RATES Overall, the US chemical tanker freight rates were unchanged this week for several trade lanes, except for the USG-Asia trade lane as spot tonnage remains tight. This all-basis limited spot activity to most regions and as COA nominations are taking longer than usual for the regular vessel owners. They have tried to delay the sailings but there has been very little spot space in the market leaving no other options for full cargoes and in turn impacting spot rates. MEG, ethanol and styrene still are being seen quoted in the market from various traders, for early January loadings to Asia. Eastbound space had not yet been fully absorbed despite the few fresh inquiries for small specialty parcels stemming from USG bound for Antwerp, most owners waiting for full contract nominations. Various glycol, ethanol, methyl tertiary butyl ether (MTBE) and methanol parcels were seen quoted to ARA and the Mediterranean as methanol prices in the region remain higher. Additionally, ethanol, glycols and caustic soda were seen in the market to various regions. PANAMA CANAL Fiscal Year 2024 revenue rose from 2023, the Panama Canal Authority said this week even after having to reduce crossings for part of the year because of a severe drought. The Authority said a noticeable impact from the drought was a decrease in deep draft transits, which fell by 21%. Despite the arrival of the rainy season, the challenge of water for Panama and the Panama Canal remains and serves as a reminder that climate change and its effects are a reality requiring immediate attention and concrete action. Potential solutions include the identification of alternative sources of water from the 51 watersheds and lakes in Panama, along with projects that can increase storage capacity to ensure water availability for the entire Panamanian population and the Canal’s operation, thereby ensuring its long-term sustainability. At the same time, the Panama Canal is exploring additional short- and long-term solutions that can optimize the use and storage of water at the Canal for the benefit of both the local population and its operations. Additional reporting by Kevin Callahan Thumbnail image shows a container ship. Photo by Shutterstock

SAO PAULO (ICIS)–EU chemicals trade group welcomed on Friday the “political agreement” between the 27-country bloc and the five-country bloc Mercosur on their free trade deal but, after being 25 years in the making, loose ends for its ratification remain. The agreement, yet to be published in full, must now be ratified by national parliaments as well as executive EU bodies. Considering the backlash it has already caused among some constituencies, such as farmers in France, it is not certain the deal will be ratified swiftly. Deforestation concerns in the Amazon or the sharp differences in workers’ rights in the EU and Mercosur have in the past also presented stones on the way. On Friday, the president of the European Commission – the EU’s main executive arm – told citizens of the 450-million people bloc their “livelihoods are protected”, addressing particularly farmers’ concerns. “This is a win-win agreement, which will bring meaningful benefits to consumers and businesses, on both sides. We are focused on fairness and mutual benefit. We have listened to the concerns of our farmers, and we acted on them,” said Ursula von der Leyen. “This agreement includes robust safeguards to protect your livelihoods. EU-Mercosur is the biggest agreement ever, when it comes to the protection of EU food and drinks products. More than 350 EU products now are protected by a geographical indication. In addition, our European health and food standards remain untouchable.” She added new safeguards had been added to the deal to comply strictly with those standards to access the EU market. Von der Leyen added EU companies will save €4 billion worth of export duties per year. BREATHING SPACE FOR BELEAGUERED EU CHEMICALS?The chemicals industry has always been in favor of the deal on both sides of the Atlantic. The EU’s chemicals trade group Cefic said on Friday its members should “gain an edge” in trade with Mercosur, paramount to compete against other global chemicals players. The EU and Germany – its largest chemicals producer – are net exporters of chemicals. In principle, they have a lot to win with free trade agreements as they can allow them to expand markets as trade barriers are reduced. At the same time, in the global game of trade, large companies also have more to win than small- and medium-size enterprises (SMEs), who do not have the same prowess in terms of reach and influence. Chemicals majors also tend to carry commanding voices in trade groups such Cefic, Germany’s VCI or, within Mercosur, Abiquim. In 2022, trade between the EU and Mercosur stood at €13.6 billion, with a trade surplus in favor of the EU of €5.2 billion, according to Cefic figures. The figures are modest considering the EU’s chemicals industry’s exports stood at €553.0 billion in 2022. The 27-country bloc imported chemicals worth €363.0 billion, so it posted a trade surplus of €190.0 billion, according to the EU’s statistics office Eurostat. This landmark agreement marks a significant milestone in fostering free, fair, sustainable and resilient trade relations between the European Union and the four Mercosur countries Argentina, Brazil, Paraguay and Uruguay. Both Cefic and the EU did not mention Bolivia as a Mercosur member, but the country joined the bloc in July. Venezuela used to be a part of it, but its membership was suspended under the current regime. Cefic and other industrial trade groups in the EU had already urged a rapid conclusion of the agreement in November in an open letter to EU bodies. “The EU-Mercosur Agreement opens tremendous opportunities for both regions. From an EU perspective, it is a crucial opportunity for companies to gain a competitive edge by accessing one of the world’s largest markets,” said Cefic’s deputy director general Sylvie Lemoine. “This agreement enhances market access, enabling EU businesses to compete more effectively on the global stage, fostering economic growth and strengthening the EU’s industrial base. This is fully in line with the spirit of the Antwerp Declaration.” “We now call upon all EU decision-makers to rapidly ratify and bring the agreement into force.” Brazil’s chemicals producers’ trade group Abiquim had not responded to a request for comment at the time of writing, but in the past it has been supportive of the trade deal. Front page picture source: Cefic