Brussels, 01/12/2015 (Agence Europe) - The European Commission said on Monday 30 November, during discussions in the European Parliament's agriculture committee on free-trade negotiations between the EU and Mercosur (Argentina, Brazil, Paraguay and Uruguay - Venezuela is not involved in the talks), that the EU would look very closely at the meat and sugar sectors, in which these countries are very competitive.
The Commission representative said, too, that the Commission would seek a Council mandate to negotiate free-trade agreements with other competitive countries, such as Australia, New Zealand, Mexico and Chile. These negotiations could very well take place concurrently with those on the transatlantic trade and investment partnership (TTIP) and those with Mercosur. “My commissioner, Phil Hogan, has emphasised the need to take account of sensitive issues in these negotiations. A balance will have to be found”, he said.
The think tank Farm Europe noted on Tuesday 1 December that the election of a liberal president in Argentina could pave the way for resumption of EU-Mercosur talks (see EUROPE 11440). Farm Europe feels that the EU is trying to push Mercosur to up its offer from 87 to 90% tariff coverage. Joao Pacheco of Farm Europe points out that, just as in TTIP negotiations, the vulnerable sectors are the beef sectors and ethanol. “The added difficulty will be sugar, as Brazil is a very competitive and large producer”, he says. For Mercosur, the fragile sectors are wine in Brazil, dairy in Brazil and Argentina, olive oil in Argentina, processed products (from pasta to chocolate) in both countries. “So the EU sector should expect more opening but not complete free trade in its sensitive sectors”, according to Pacheco, who suggests that this will mean probably lower quotas on sensitive products than in TTIP. (Original version in French by Lionel Changeur)