EU agri-food organisations have criticised “safeguard” mechanisms drawn up to protect the sector under the pending trade agreement with South America’s Mercosur bloc.
Yesterday (3 September), the European Commission (EC) submitted proposals to finalise the EU-Mercosur Partnership Agreement (EMPA) trade pact, which was announced in December.
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Some agri-food groups in Europe have expressed concern that the deal could drive up competition and lower prices and product standards.
Under the EC’s proposals, Brussels has pledged to monitor the market closely, assess import impacts, and regularly update both the Council and the European Parliament.
For instance, if import levels rise by more than 10% or prices fall sharply, Brussels could temporarily suspend or reduce agreed tariff concessions.
The agreement limits preferential imports of specific products, such as beef and poultry, to low percentages of EU production.
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By GlobalDataHowever, nine organisations, including principal EU farming lobby Copa-Cogeca and AVEC, representing the poultry sector, claimed the EC’s package still “falls short”.
“While this initiative clarifies certain aspects of safeguard implementation, critical questions remain over how such a unilateral legal act would be voted on, enforced, and accepted by Mercosur countries as a binding commitment by the Commission,” the statement read.
The groups, which also included sugar-manufacturing association CEFS and beet-growers body CIBE, reiterated their long-standing objections concerning disparities in production standards and unresolved sustainability issues, which they argue remain the “core and unresolved problem” of the agreement.
They further criticised the Commission’s claim of having addressed farmers’ concerns, stating that EU agriculture “continues to be treated as a bargaining chip in trade negotiations”.
The EU-Mercosur trade deal, originally agreed in 2019 after more than 20 years of negotiation, has faced repeated delays due to opposition from several EU member states, including Ireland and France.
If ratified, it would establish the “world’s biggest free trade zone”, encompassing a market of over 700 million people, the EC says.
It claims the agreement could lead to a 39% rise in EU exports to Mercosur countries, potentially reaching €49bn ($57bn) annually, with estimated support for more than 440,000 jobs across the bloc.
EC president Ursula von der Leyen said: “We are continuing to diversify our trade, foster new partnerships and create new business opportunities. EU businesses and the EU agri-food sector will immediately reap the benefits of lower tariffs and lower costs, contributing to economic growth and job creation.”
Agri-food exports alone are expected to increase by nearly 50%, with tariff reductions proposed for European wine, spirits, chocolate, and olive oil.
The deal also “establishes robust safeguards protecting sensitive European products against any harmful surge in imports from Mercosur. In this sense, the Commission proposes to supplement the agreement with a legal act that operationalises the bilateral safeguards chapter of the EMPA.”
Christophe Hansen, the EU Commissioner for Agriculture and Food, said the “agreement is balanced for the EU agri-food sector” and the “imports will be limited and our farmers’ interests carefully safeguarded”.
The wine industry in Europe has expressed support for the deal. The European Committee of Wine Companies (CEEV) welcomed the Commission’s adoption of both the Mercosur and Mexico agreements.
CEEV president Marzia Varvaglione said: “At a time of increasing geopolitical and economic challenges, it is more important than ever for the EU to secure and diversify its trade relations with trusted partners.”
Varvaglione even called on the European Parliament and the Council to “swiftly advance the ratification process so that wine businesses and wine consumers on both sides can benefit from these historic agreements without delay”.
