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Europe Daily Bulletin No. 13779
EXTERNAL ACTION / Mercosur

EU27 could give green light to trade agreement on 9 January

Following the postponement of the trade agreement with the Mercosur countries at the European Council meeting on 18 December, the European Commission said it was “on the right track” for a swift signing.

The institution’s spokeswoman, Paula Pinho, confirmed on Monday 5 January that discussions had continued over the last two weeks to obtain the green light from the Member States by qualified majority.

According to several sources, a vote to adopt the agreement should take place on Friday 9 January at the meeting of the ambassadors of the EU27 (Coreper), which would allow the President of the European Commission, Ursula von der Leyen, to travel to Paraguay on 12 January for the final signature. However, this date has not yet been officially confirmed by the European Commission.

The Ministers will also have to approve the Regulation detailing the safeguard clause in the agreement. While the Council of the EU and the European Parliament agreed on 17 December on thresholds of 8% for triggering a safeguard investigation, the final agreement could, according to our information, return to Parliament’s position, which set thresholds at 5% (see EUROPE 13775/9).

Special meeting of the Ministers for Agriculture. In the absence of an opportunity to convene a sectoral meeting of EU Agriculture Ministers in the near future, the European Commission and the Cyprus Presidency of the Council of the EU have set up a special meeting specifically to discuss the trade agreement, as indicated in an invitation from the Commission and Cyprus, seen by Agence Europe. Discussions should include support for ‘mirror’ clauses to ensure reciprocal health and environmental standards for agricultural production (see EUROPE 13776/19).

According to our information, at least 20 Agriculture Ministers will be present, including the French and Italian Ministers. Paris and Rome had fervently defended a postponement of the signing of the EU/Mercosur agreement, scheduled for last December.

Against this backdrop, on 4 January the French government announced the publication of a decree to put an end to imports of fruit and vegetables - from South America or elsewhere - containing residues of substances banned in Europe. The Commission will have 10 days to validate the measure once it has been officially adopted (see other news).

Another topic scheduled for Wednesday’s meeting is the future of the Common Agricultural Policy (CAP) under the 2028-2034 Multiannual Financial Framework. A discussion is also expected on how to temporise the additional costs generated by the application of the Carbon Border Adjustment Mechanism (CBAM) for fertilisers. (Original version in French by Pauline Denys with Lionel Changeur)

Contents

CYPRUS PRESIDENCY OF THE COUNCIL OF THE EUROPEAN UNION
EXTERNAL ACTION
SECTORAL POLICIES
Russian invasion of Ukraine
ECONOMY - FINANCE - BUSINESS
SECURITY - DEFENCE - SPACE
NEWS BRIEFS