The European Commission set out for member state agriculture ministers meeting Brussels on Tuesday 15 November the conclusions of the study on the impact on the EU agri-food sector of 12 trade agreements with third countries (see other article).
Several of the ministers felt that the study confirmed the need for caution by the EU, particularly in sensitive agricultural sectors. The Agriculture Council of 23 January 2017 will discuss this issue in greater detail, sources have indicated.
The study examined two scenarios (a 50% and a 25% tariff cut) by 2025 and it predicts that free-trade deals would bring gains for the milk and pigmeat sectors. However, the impact would be negative for beef (drop in prices and production), rice, mutton, poultry and sugar.
Agriculture Commissioner Phil Hogan told ministers that the Commission’s goal in negotiations was to maximise the results of the agreements while minimising the negative impact on sensitive sectors.
Irish minister Michael Creed said that the study confirmed the concerns expressed on the impact of trade liberalisation on the beef sector. He drew a link with climate change (dismantling European production that is carbon-efficient unlike some products from third countries). He also said that sensitive products should be discussed at the final stages of negotiations and not at the start, as the Commission sometimes has done. Italy expressed concern at the impact of trade agreements on European rice production.
French minister Stephane Le Foll highlighted that the potentially negative effect on sensitive products presented a risk to food self-sufficiency. Latvia asked if the countries with which the EU is negotiating apply the same environmental and health standards as the EU – if not, there is a competitiveness problem. Spain remained somewhat non-committal, backing trade agreements insofar as they respect the most sensitive sectors. Lithuania welcomed the efforts by the Commission to open up markets but underlined that agreements had to be balanced.
The so-called liberal countries, such as Sweden, the Netherlands and Denmark, were firmly in favour of trade agreements with third countries.
Concern over negotiations with Mercosur countries. In a joint statement, France, Germany and Poland called for a review of the tariff strand in on-going talks with the Mercosur countries and of the EU strategy with regard to the South American bloc. They argue that, in view of the “competitiveness” of this partner, “the exchange of agricultural trade concessions should not be asymmetrical at the expense of the EU”.
The two parties exchanged offers in May, with the Commission finally giving up on including beef and ethanol at this stage. A number of countries (Ireland, Slovenia, Hungary, Belgium, Austria and Bulgaria) supported the requests of the aforementioned three countries. Hungary advocated a balanced, moderately ambitious agreement with the Mercosur countries. (Original version in French by Lionel Changeur)