Brussels, 28/04/2011 (Agence Europe) - A European Commission study has revealed that a trade agreement with Mercosur would have a generally adverse impact on the European agricultural sector.
The findings of a study carried out by the European Commission, revealed by AFP on 28 April, comparing the various offers on the table before the 2010 resumption of free trade agreement negotiations between the EU and Mercosur (Argentina, Brazil, Paraguay and Uruguay, with Venezuela in the process of accession) conclude that that an agreement would have a generally negative effect on European agriculture, noting, however, that the extent varies considerable depending on the agricultural products, regions and liberalisation scenarios. The impact will be much more pronounced for certain specific agricultural sectors which tend to be concentrated in regions vulnerable to heavy specialisation in the most sensitive production, the report states. Depending on the offers, it puts the fall in agricultural income at between €1 billion and €7 billion (0.5-3.2%), with the decline being most marked in Ireland, the United Kingdom and France (over 5%, almost 5% and close to 3% respectively in the worst case scenarios). Beef production could see losses of between €250 million and €3 billion by 2020, depending on the offers. Sugar, followed by cereals, olive oil and fruits, would see less substantial falls, and the prices of rice, beef and butter would be likely to fall sharply. Almost 33,000 jobs could be under threat annually and the EU's trade balance for unprocessed agricultural products would be between €1.2 billion and €5 billion in the red, depending on the various scenarios. (E.H./transl.rt)