The trade agreements between the European Union and Mexico, South Korea and Switzerland have increased the EU’s agri-food exports by more than €1 billion and boosted value-added in the agri-food sector by €600 million, according to an independent study commissioned by the European Commission and published on Monday 27 February.
Entitled 'Impacts of EU trade agreements on the agricultural sector,' the study by consultants Copenhagen Economics, analysed the consequences of the three different types of trade agreement on exports of agri-food products: the older ‘first generation’ agreement such as the one signed with Mexico; new generation deeper and extended free-trade agreements, such as the one signed with South Korea; and specific sectoral agreements, such as the one with Switzerland.
20,000 jobs supported in the agri-food sector. The study shows that the increased exports have supported 20,000 jobs in the agri-food sector, of which 13,700 are in primary agriculture.
Value-added in other sectors has increased by more than €400 million and an additional 7,700 jobs in the EU have been supported by the agreements. The trade agreements have also increased EU imports and given EU consumers access to agri-food products at lower prices.
The study’s authors stress that ‘Rising protectionism both in the EU and in main trading partners may limit trade in the future and hinder negotiations of new trade agreements.’
The authors explain: ‘A general finding of the analysis is that there is a potential for increasing EU trade further even within the existing scope and depth of the trade agreements. The EU trade agreements are in many cases a precondition for entering new markets or launching new products in existing export markets, but EU exporters also need to build a reputation and establish distribution networks before they are able to penetrate new markets.’
EU Agriculture Commissioner Phil Hogan said that the figures were clearly proof that the ambitious and balanced trade deals were working well for the European food and agriculture sector.
Moreover, according to the study, the increase in imports under the agreements has had little impact on production in the EU, mainly because the imports have replaced products from other non-EU countries or there has been an increase in consumption in the EU.
The agreement signed between the EU and Mexico increased the EU’s agri-food exports by €105 million in 2013, three years after the two sides scrapped all barriers to trade. The increased imports worth €316 million in the same year were mostly of staples.
The EU-Switzerland trade agreements on farm products and processed farm products boosted the EU’s agri-food exports by €532 million in 2010, three years after they fully came into force.
The EU-South Korea free-trade agreement came into force in 2011. It has led to an increase in EU exports to the country of around €440 million. The rise in exports of agri-food products to South Korea does not seem to have resulted in a decrease in exports to Japan. The study shows that the free-trade agreement has increased the EU’s imports from South Korea by around €20 million. (Original version in French by Lionel Changeur)