On Thursday 16 November, EUROPE was told by a source in the circles concerned that the European Union is reportedly planning to bring its import quota for ethanol to 100,000 tonnes in its final offer on market access for Mercosur (Argentina, Brazil, Paraguay and Uruguay) ahead of a bilateral free trade agreement.
Talks are nearing the finishing line. According to the Commission, the fifth round of negotiations (since their resumption in October 2016), which was held in Brasilia at the start of November, enabled "substantial progress" to be made towards an agreement in all areas covered. It also enabled the groundwork to be laid for a third exchange of offers on market access (covering goods, services and public procurement) (see EUROPE 11904).
The negotiators remain committed to concluding an agreement in principle by the end of 2017. The next round will be held in Brussels over the last week of November and the first week of December.
During the exchange of revised market access offers in October, the EU suggested opening import quotas of 70,000 tonnes for beef and 600,000 tonnes for ethanol. This offer – which is of concern to around 12 member states (with France in the lead, which is also concerned about the treatment for other sensitive products such as poultry, sugar and honey) – did not, however, meet Mercosur's expectations.
The four Latin-American countries consider these quotas lower than those proposed at the start of the negotiations in 2004 of 100,00 tonnes for beef and a million tonnes for ethanol.
On Thursday, the EU cooperatives and organisations (Copa and Cogeca) criticised the EU's decision to improve its agricultural offer in exchange for South American concessions to other European sectors. Copa-Cogeca raised serious concerns about public health given the situation in Brazil, and about the fight against climate change.
"It is scandalous to give European consumers more beef from these countries when the safety standards are not equivalent. Eighty-six percent of our beef imports already come from these countries which do not meet the same quality or traceability standards as us. This potential increase in beef exports from Brazil to the EU is not good news if EU consumers do not want to be exposed to antibiotic residues which are used in these countries and banned in the EU", Copa-Cogeca states.
The organisation hopes that an agreement will not be made before the Commission's veterinary inspection mission to Brazil in January 2018. It would like this mission to be managed and supported by a European Parliament committee of inquiry.
Copa-Cogeca also underlines its concern about including orange juice in the EU offer. The offer includes vast volumes of orange juice from these countries – but with no reciprocity on their part.
In addition, Copa-Cogeca criticises the negative environmental impact of an agreement with Mercosur. The organisation particularly highlights the breadth of deforestation in Brazil due to a strong increase in agricultural production. This deforestation increases greenhouse gas emissions when the EU has cut its emissions by 20% since 1990. (Original version in French by Emmanuel Hagry)