French President Emmanuel Macron, who was speaking to the Brussels press on Tuesday 2 July, defended the free trade agreement concluded with Mercosur three days earlier (see EUROPE 12286/3).
Recalling that protectionism is not in France's DNA, he considered that this new treaty was the result of an “openness without naivety”.
Any negotiation implies a degree of reciprocity: while it leads, among other things, to compromises in terms of agricultural openness, Mr Macron stressed France's role in the modalities of this opening granted by the European Union. The EU has thus obtained from the South American bloc certain guarantees that it described as “strong and historic”, mainly for the agri-food sector, which is particularly concerned about the agreement (see EUROPE 12286/4).
He cited the “provisions for the most sensitive sectors, beef and sugar in particular, to protect them with quotas”, but also for compliance with European health and environmental standards: “products that do not comply with the same rules must not be allowed in”, Mr Macron stressed.
Finally, he stressed the importance of the safeguard clause, a provision pushed by France which should make it possible to suspend certain provisions of the agreement that could cause a profound imbalance in a sector.
Climate implementation
According to the French President, there is in the agreement a “coherence between the trade agenda and the climate agenda”, “because France has strongly requested it”. “From the beginning, we secured the mention of the Paris Agreement, but, in the Mercosur agreement, most importantly, its effective implementation”. According to the French President, the agreement was able to be concluded because all Mercosur member countries have confirmed their adhesion to the Paris Agreement; but “if tomorrow, this or that Mercosur country does not effectively implement the Paris Agreement, does not put itself on a climate path that respects it, the agreement will no longer be valid”.
He also promised that he would encourage the creation of a “pact at the European level” concerning impact assessment and independent and transparent monitoring of its implementation.
As in a majority of other recent trade agreements, the sustainable development chapter of the agreement containing these provisions is subject to a dispute settlement mechanism in the event of default by the parties. If consultations for an amicable settlement fail, the complaining party may request the establishment of an arbitration panel (composed of three independent and impartial arbitrators), whose hearings will be public, according to the agreement in principle. The jury's report is final - without appeal - and is binding on the parties. “The complainant can put in place countermeasures if the infringing Party fails to comply with the panel’s report”, the agreement also states.
However, a senior Commission official claimed that it is impossible to quantify environmental damage. Recalling that the Paris Agreement itself does not contain any binding provisions, the Commission prefers to emphasise the incentive role of these free trade agreements vis-à-vis European trading partners. (Original version in French by Hermine Donceel)