While the European Commission points out that negotiations with Mercosur over the past five years have not covered the agricultural import quotas negotiated in 2019, adjustments were made for Paraguay’s pork and biodiesel exports “on account of its land-locked developing country status”, explained the institution.
Paraguay has thus obtained an increase of 1,500 tonnes in the quota of pork exported without tariffs, and 50,000 tonnes for biodiesel.
The European Commission insists that in general terms, the quotas negotiated are “carefully calibrated” so as not to disrupt the European agricultural market.
Beef. The beef sector is one of the sectors that is most worried about the potential effects of the EU/Mercosur agreement. The agreement provides for a preferential tariff of 7.5% on Mercosur beef up to a volume of 99,000 tonnes per year. Furthermore, Mercosur beef will be exported to the EU at traditional tariffs.
In the view of the European Commission, this quota is more than reasonable given that beef imports from Mercosur amounted to 196,000 tonnes in 2023.
Nevertheless, European producers argue that once the agreement comes into force, 99,000 tonnes of beef will enter at a reduced tariff, and therefore at a reduced price.
Benoit Cassart (Renew Europe, Belgian), an MEP and beef farmer, believes that we should take into account the fact that quotas for beef and poultry also relate to noble products that European farmers use to make their profit margin. The prices of these Mercosur items are defying European competition and will do so even more with the 7.5% tariff, according to the MEP, “thereby jeopardising our strategic autonomy in terms of protein production”.
Phytosanitary aspects. As for fears that hormone-treated beef will flood European markets, the European Commission believes that these fears are unfounded. While they admit that Brazil, in particular, continues to use hormones on its cattle farms, it explains that there will be farms that specifically export to the EU and these will not be able to use hormones; furthermore, a traceability system is planned.
Critics of the agreement counter these arguments with a recent report by the Food and Veterinary Office (FVO), which casts doubt over traceability and controls – in Brazil – of hormones that are banned in Europe (see EUROPE 13520/14).
Poultry. European farmers also fear chicken imports from Mercosur. After a five-year phasing-in period, poultry imports from Mercosur will be tariff-free up to 180,000 tonnes. In 2022, chicken imports from Mercosur will total around 240,000 tonnes.
The European Commission estimates that the volume of 180,000 tonnes corresponds to the increase in chicken consumption expected in Europe over the next few years.
To further reassure European producers, the Commission is insisting on the inclusion of a safeguard clause, which also relates to products under tariff quotas, and which can be activated if increases in imports from Mercosur cause or threaten to cause serious damage to the relevant sectors in the EU.
Reactions. Italy reiterated its long-awaited message on the agreement on Monday 9 December (see EUROPE 13541/2), through the Minister for Agriculture: Italy believes that approval of the agreement is conditional on compensation for the European agricultural sector.
The Polish Finance Minister, Andrzej Domański, was more categorical when speaking on Wednesday 11 December: “Poland cannot accept the agreement with Mercosur as it stands. This agreement would be detrimental to European farmers, particularly Polish farmers”.
The European Parliament is still awaiting further details on the compensation fund. The fact that quotas for agricultural products from Mercosur have not been lowered is proving to be a problem for many MEPs.
Despite the progress made on the environmental front, according to Benoit Cassart, there is still no question of him approving the agreement. (Original version in French by Léa Marchal with Mathieu Bion)