Copa-Cogeca reacts to the decision on the EU-Mercosur agreement

European agricultural organizations have sharply criticized the trade agreement between the EU and Mercosur countries, calling it “fundamentally unbalanced” and undermining trust in European institutions.

The reaction came after a qualified majority of EU countries supported the agreement with Brazil, Argentina, Paraguay and Uruguay on January 9. The lobbying organization Copa-Cogeca, which represents EU farmers’ associations and agricultural cooperatives, declared the unity of farmers in opposing the agreements, even despite the updated protective mechanisms.

At the same time, the European Commission calls the agreement “mutually beneficial” and one that creates the world’s largest free trade area with a market of over 700 million consumers. According to the EC, in 2024, the turnover between the EU and Mercosur exceeded €111 billion, and the EU’s share in the bloc’s external trade was almost 17%.

The agreement provides for the gradual elimination of EU tariffs on 92% of Mercosur exports over 10 years, while Mercosur countries will remove tariffs on 91% of EU exports over 15 years. The European Commission predicts that by 2040, EU exports to Mercosur will increase by almost €50 billion, while supplies from Mercosur to the EU will increase by up to €9 billion.

According to Ursula von der Leyen, around 60,000 European companies, half of which are small and medium-sized enterprises, will benefit from the agreement, saving around €4 billion a year on export duties. The document also protects 350 European geographical indications.

To reduce the risks for EU farmers, the agreement includes safeguard mechanisms for beef, poultry, sugar, eggs and citrus fruits. Temporary removal of preferential tariffs is possible if imports increase by more than 8% or prices fall by more than 8% compared to the three-year average.

Despite this, Copa-Cogeca said it would continue to mobilize farmers against the ratification of the agreement, which still needs to be approved by the European Parliament.

Tags: EU