The European Commissioner for Trade and Economic Security, Maroš Šefčovič, appeared before the members of the European Parliament’s Committee on International Trade (INTA) on Thursday 16 January to defend the EU/Mercosur trade agreement. Anticipating the flood of speeches on the impact of the agreement on farmers, he confirmed the rumour that had been circulating for several months: the Commission is planning a €1 billion fund to compensate farmers who would be penalised by the agreement.
Mr Šefčovič said that it was mainly a warranty to reassure the agricultural sector, which should not really need it: “We are pretty convinced that this would not happen. We are ready to put a warranty to this agreement, and if triggered we would have at least €1 billion, but this is a warranty”, he told MEPs.
A number of elected representatives spoke of the concerns facing the farming community, particularly in the beef, poultry and sugar sectors. The groups are now divided between those who are reassured by the potential compensation measures and those who maintain a defensive line.
Several members of the INTA committee also asked for clarification on compliance with sanitary and phytosanitary standards for imports of Mercosur products.
The Commissioner sought to reassure on these points, reiterating the Commission’s view that agricultural imports from Mercosur would have less of an impact. For him, as for a number of elected representatives, it is the cumulative impact of this trade agreement and others that must be taken into account, and not just the consequences for one sector.
To further reassure Parliament, Maroš Šefčovič will appear before the members of the Committee on Agriculture and Rural Development on 30 January, alongside Commissioner for Agriculture Christophe Hansen (see EUROPE 13557/27).
The groups adjust their lines. The changes made to the 2019 version of the trade agreement appear to have convinced some MEPs, who were concerned about Mercosur’s compliance with the sustainable development chapters and the Paris Agreement in particular. The Renew Europe and S&D groups want to take the time to analyse the text before taking a definite position.
The EU/Mercosur agreement could gain in popularity in certain countries, thanks in particular to the compensation fund for farmers. During the exchanges on Thursday, the criticism was less virulent than it had been in the past. Only the PfE, Greens/EFA and The Left groups maintained a firm position against the agreement.
On the other hand, the members of the EPP and ECR were clearly in favour of the agreement, which they have long supported: “We think the agreement is not a problem, it’s part of the solution. It has a crucial strategic dimension”, insisted Iuliu Winkler (EPP, Romanian).
The architecture of the agreement: a determining factor. Although the agreement will not be on the table for ratification for several months, MEPs are concerned about the type of treaty that will be presented to them. Many elected representatives asked the Commissioner for news on the possibility of separating the trade part from the rest of the agreement in order to have the first part ratified more quickly.
This is a question that Mr Šefčovič did not answer, promising instead to come back with answers in a few months’ time. “A few months is too long”, worried Kathleen van Brempt (S&D, Belgian). (Original version in French by Léa Marchal)