EU-Mercosur agreement / acordo UE-Mercosul
Trade Regulations

Parmesan cheese causes friction in EU-Mercosur agreement

Aug, 10, 2021 Posted by Ruth Hollard

Week 202132

Parmesan cheese is yet another front of disagreement between the European Union and Mercosur to put into effect the free trade agreement between the two economic blocs. The new technical divergence is in addition to one of a more political nature and with a strong appeal in European public opinion: deforestation in the Amazon and the environmental agenda of the Jair Bolsonaro government.

In practice, the treaty announced in June 2019 is currently in a state of hibernation. It needs to be signed and then ratified. Several EU countries have already made it clear that without changes in Brazilian environmental policy and a reduction in deforestation in the Amazon, the free trade agreement will not be put to a vote in the European Parliament nor approved in the European Council.

Meanwhile, however, the executive branch of the EU in Brussels is carrying out the “legal scrubbing” of the text already negotiated. It was during this process that, according to sources in the South American bloc, a new conflict emerged: the permission for Brazilian and Argentine companies to continue using – or not – the “parmesan” seal on their cheeses.

The free trade agreement includes, among its points, a chapter on intellectual property. This involves, for example, the whole part of geographical indications – protection that is given to a product known for its origin. There are dozens of foods and beverages on this list, such as port wine, Patagonian lamb, Brazilian cachaça, Italian prosecco, and so on.

Source: Valor Econômico

To read the full original article, visit the link:

https://valor.globo.com/brasil/noticia/2021/08/10/parmesao-e-novo-atrito-em-acordo-ue-mercosul.ghtml

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