Although the free trade agreement, signed between the European Union and Mercosur, did not concern vegetable extracts, the top managers of Unitán, Argentina’s leather tanning supplier, are placing “great expectations” on its effects. Moreover, if the deal, signed between the two free trade areas, also included a specific treatment about vegetable tannins, then “that would be very good news indeed”. While speaking to the Expres Diario, an Argentinian daily newspaper, Antonio Gil, Unitán Public Relations manager, pointed that out.
Wait and see
“Still we do not know exactly the terms of the agreement – said Gil –, yet some industries, such as livestock and farming, already know they will benefit from it”. Actually, even though the vegetable extracts industry is not in the list of the favoured ones, Gil is philosophical about it: to his internationalized company, whose revenues mostly come (90%) from overseas markets (specifically, Italy and Mexico as to tanning), the agreement between the EU and Mercosur, “which took 20 years in terms of negotiations, is however an outstanding step”. Of course, if by chance they took action in favour of exports, it would be the cherry on top anyway: in fact, that would make Argentina’s product more competitive compared to rival extracts manufactured in Brazil and South Africa.
Gil did not hold back a couple of concerns: the former is about times to approve formally the agreement; the latter is about potential hostile feedback after the deal itself. “It will take long before they approve the agreement – wrapped up the manager –, especially in some countries and for some specific products most of all. Yet, we will make it in the end”.