How Will the EU Mercosur Agreement Affect Agriculture in Europe
Following 25 years of negotiations, The EU has approved the Mercosur trade deal. This happened after European Commission president Ursula von der Leyen went to Montenegro to sign the agreement, which she called “historic.”
She met with the four founding members of Mercosur, respectively Uruguay, Paraguay, Brazil, and Argentina. Despite negotiations being on and off for over 20 years, discussions increased in the last few months due to the rise of Donald Trump’s campaign.
This agreement focuses on agrifood products and raw materials, aiming to make trades easier while reducing consumer prices. However, according to many specialists, this agreement puts EU agriculture at risk. Mercosur could make the EU more dependent on Mercosur countries for poultry, beef, rice, and sugar while undermining the high standards established by Europe, its farmers, and its sovereignty.
The Potential Consequences of the Deal
Speaking about the deal, Ursula Von der Leyen said that this was a great opportunity for both trade blocs following 25 years of negotiations. “We both believe that openness and cooperation are the true engines of progress and prosperity. I know that strong winds are blowing in the opposite direction towards isolation and fragmentation, but this agreement is our clear response,” she said.
But there’s more to it. In fact, Mercosur may have unwanted consequences such as:
Competition for EU Farmers
EU farmers have agreed that Mercosur might have some harmful effects. Farmers in Europe have actually protested against this deal before, talking about how it would bring cheap South American imports that go against the green and food safety standards imposed by the EU. Strict regulations make local production more expensive, but farmers face more competition due to the lower import requirements.
Poultry Meat Production Effects
The trade is also expected to affect European Union’s poultry meat production under Mercosur. For example, since breast meat necessity is a considerable reason for producers to raise chickens, importing two fillets from another country would result in 1 chicken not being raised in the EU.
Several EU States Disagreed to the Deal
Not all EU countries are fans of the deal. One of the prominent figures opposing the deal is French President Emmanuel Macron, who called the trade deal “unacceptable.” Poland also joined France, opposing the agreement. Meanwhile, Giorgia Meloni, the prime minister of Italy, also said that conditions to approve the deal had not been met before the announcement.
AVEC has urged the EU to oppose this deal, mentioning how Mercosur will severely affect EU consumers and farmers. AVEC considers that the EU must put its own consumers and farmers at the top and uphold its values. According to Steenberg, the AVEC secretary general, the trade deal is considered a hazardous decision.
Furthermore, many believed the Mercosur agreement might fail, causing concerns among commission members. Because China is increasing its investments in South America at a fast pace, officials think the EU might lose credibility and influence. At the same time, Europe is focusing on diversifying its trade relations, so it doesn’t have to depend on the U.S. and China anymore.
