Rosário Salgueiro, correspondente da RTP em Paris EU-Mercosur Agreement: A Deep dive
Many are expressing concerns over the recently finalized trade agreement between the European Union (EU) and the Mercosur nations. This landmark deal, initially reached in 2019, has yet to receive formal ratification from the EU, encountering resistance from France, Poland, Hungary, and Italy. However, Italy’s government indicated on Wednesday that it may support the agreement, contingent upon assurances regarding environmental and health standards.
What Dose the Agreement Entail?
The arrangement anticipates a phased reduction of tariffs – over a 15-year period – encompassing up to 91 percent of EU exports destined for Mercosur, including items like automobiles and wine. Conversely,the EU will gradually eliminate tariffs on up to 92 percent of Mercosur exports – primarily agricultural products – over a decade.
This prospect is creating anxiety among agricultural communities. Farmers fear cheaper imports from Mercosur countries that may not adhere to stringent EU environmental and food safety regulations.
They argue the agreement could undermine their competitiveness.
The regulation of pesticide use represents a particularly sensitive point. France is specifically calling for Mercosur to mirror EU production standards, particularly considering the rising costs of fertilizers for European farmers. According to a recent report by the European Environmental Bureau (November 2023), fertilizer prices across the EU have increased by an average of 150% as 2021.
Nevertheless, the EU champions this pact as a vital choice to over-reliance on China and anticipates savings of approximately four billion euros in tariffs. I’ve found that diversifying trade partners is critical for economic stability, especially in today’s global landscape.
On Wednesday, EU Agriculture Ministers convened in Brussels for an emergency session to discuss outstanding issues related to the deal.Sources within the EU have suggested potential payments to european farmers will be included in the next EU budget.
