Europe’s agri co-ops have hit out at trade deal finalised by European Commission and Mercosur officials on 6 December, warning it will have “profound consequences” for Europe’s farmers.
Announcing the deal at the end of summit talks with Mercosur (Brazil, Argentina, Paraguay, and Uruguay) leaders in the Uruguayan capital, Montevideo, Commission president Ursula von Der Leyen said it marked “a truly historic milestone.”
“This is a win-win agreement, which will bring meaningful benefits to consumers and businesses, on both sides,” she said. “We are focused on fairness and mutual benefit. We have listened to the concerns of our farmers and we acted on them. This agreement includes robust safeguards to protect your livelihoods. EU-Mercosur is the biggest agreement ever, when it comes to the protection of EU food and drinks products.
“More than 350 EU products now are protected by a geographical indication. In addition, our European health and food standards remain untouchable. Mercosur exporters will have to comply strictly with these standards to access the EU market.”
With a joint population of 273 million, and forming the world’s sixth largest economy outside the EU with an annual GDP of €2.2tn, the Mercosur countries make for a large trading partner. Von Der Leyen added that removing Mercosur tariffs will enable EU exporters to save over €4bn a year in customs duties.
But the EU’s farming community is concerned about the ability of Mercosur countries to adopt the same on-farm production standards imposed on EU farmers.
Copa and Cogeca, the organisations representing European farmers and their co-operatives, remain opposed to the deal, warning it will have “profound consequences for family farming across Europe affecting also 450 million of EU consumers”.
“While we recognise the EU’s need to deepen trade relations in the current geopolitical context,” they added, “this must not come at any cost. The EU agricultural sector remains particularly vulnerable to the concessions made in the unbalanced agricultural chapter of this agreement.
“Sensitive sectors such as beef, poultry, sugar, ethanol, and rice face heightened risks of market saturation and income loss due to the influx of low-cost products from Mercosur countries. This agreement will exacerbate the economic strain on many farms already grappling with high input prices and challenging climatic conditions.”
Copa and Cogeca added that Mercosur countries “do not meet the production standards required of EU agriculture, whether in terms of plant protection products, animal welfare, or sustainability practices.” They claim that Mercosur nations operate under lower labour and safety standards, which, they say means they can produce at lower costs, which makes fair competition impossible for EU producers.
“There is a lack of coherence in the European Commission’s actions,” they said. “In its previous mandate, the Commission multiplied constraints and regulations for our producers, yet now, at the start of its second mandate, it has prioritised this inequitable agreement.”
“Even before presenting its vision for the Future of Agriculture, the Commission has sent a very worrying message to millions of farmers across Europe,” said Copa president Massimiliano Giansanti. “This is especially concerning during such a delicate phase of reopening dialogue between farmers and European institutions. Member states and MEPs must now firmly challenge the terms of this agreement and work towards a solution that guarantees a fair and balanced approach to protect the EU’s farming model.”
Giansanti said Copa would be exchanging views with ministers and MEPs while launching a flash action in Brussels, opposite the Council.
”EU farmers and agri-co-operatives are not opposed to trade but advocate for agreements that are fair, balanced, and environmentally sustainable,” added Cogeca president Lennart Nilsson. “The current EU-Mercosur agreement fails to meet these criteria, using the agricultural sector as a bargaining chip to benefit other industries. Cogeca also call on EU member states and the European Parliament to take a strong stance against this deal.”
The agreement will be submitted to the European Council and Parliament for ratification. A number of EU countries oppose the deal, including France, Poland, Austria and Ireland and this, if supported by other nations, could prevent the deal’s ratification.
