EU proposes safeguards for agreement with Mercosur

The European Commission, the executive arm of the European Union (EU), outlined yesterday the proposed safeguards designed to prevent the bloc’s trade agreement with Mercosur from triggering an increase in agricultural imports that could harm local farmers. The measure had been expected since September as an effort to overcome France’s resistance to approving the deal.

The Commission stated it could launch investigations into imports from Mercosur countries if the prices of imported goods are at least 10% lower than those of equivalent products produced in Europe, according to the Associated Press. If the executive body determines that the difference has caused serious harm, the preferential tariffs negotiated under the Mercosur agreement will be suspended. The suspension could also occur if the import volume rises more than 10% year-on-year under the preferential quotas.

According to the AP, there are also “special provisions” for agricultural sectors considered sensitive in Europe, such as beef, eggs, and ethanol.

“In the unlikely event of an unforeseen and harmful surge in Mercosur imports or an undue drop in prices for EU producers, swift and effective safeguards could be activated,” the Commission explained in a statement.

These safeguards still require approval by the European Council and the European Parliament, according to the “Euractiv” website. However, this approval will not require reopening the trade chapters of the bilateral agreement.

The strategy aims to overcome the main obstacle to the final approval of the Mercosur-EU agreement — the resistance of European farmers, particularly those in France. According to “Euractiv,” the European Commission and France have been discussing the safeguards for “months.”

Even with the announcement, groups representing the regional agricultural sector expressed dissatisfaction. In a statement, Avec — the organization representing EU poultry producers — said the safeguard activation threshold related to import volumes is “essentially impossible to reach” and described the safeguards as “illusory and nonfunctional.”

The European Commission is now trying to move forward with approval of the agreement by separating the trade component from the political component. The trade deal could be passed by a qualified majority of EU member states and by a simple majority in the European Parliament.

Source: Globo Rural

Sharing is caring!