Mercosur: Protective measures for European agriculture

At the recent plenary session of the European Parliament, new safeguard measures aimed at supporting European farmers were approved in light of the trade agreement with Mercosur. This agreement, concluded between the European Union and four South American countries—Argentina, Brazil, Paraguay, and Uruguay—opens new trade opportunities but also raises concerns about the potential negative impact on local agriculture.

Key provisions of the new rules

According to the new regulation, adopted by 483 votes in favor, 102 against, and 67 abstentions, the European Commission now has the right to temporarily suspend tariff preferences on agricultural imports if there is a sharp increase in shipments from Mercosur countries. This applies to sensitive products such as poultry, beef, eggs, citrus fruits, and sugar.

One of the key aspects of the new rules is that the European Commission must initiate an investigation if import volumes of these products increase by 5% above the three-year average, and prices of imported products are 5% lower than prices of similar products in the EU. This significantly reduces the initially proposed threshold of 10%, underscoring the caution of European legislators regarding the potential impact of the agreement.

Investigation Request Procedure

Requests for investigations can be initiated by Member States, legal entities representing the agricultural sector, or associations acting on behalf of the industry. This allows for a rapid response to market developments and protects the interests of local producers, who may face significant difficulties in the face of increased imports.

Import Impact Assessment

Furthermore, the European Commission is required to submit a report to Parliament at least every six months assessing the impact of imports of sensitive products on European agriculture. This will allow legislators and farmers to stay informed about the current market situation and take appropriate measures to protect their interests.

The approved safeguard measures are an important step in ensuring the resilience of European agriculture in the face of globalization and increasing international trade. Despite the potential benefits of the Mercosur agreement, such measures provide essential protection for farmers who could be harmed by a sharp increase in imports. This highlights the importance of balancing free trade with the protection of local producers, a pressing issue in the current economic climate.

Tags: Brazil, EU, sugar, agricultural products, Argentina, Uruguay, Paraguay, restrictions, eggs