Spanish and French producer groups accuse EU of using agriculture as a “bargaining chip”
The European Union’s new trade agreement with Mercosur, the Latin American bloc made up of Argentina, Brazil, Uruguay, Paraguay and Bolivia, has divided opinion amongst EU member states.
The historic deal, signed on Friday after 25 years of negotiations, will create one of the world’s biggest free trade zones, with more than 700mn consumers. Under the terms of the agreement, the EU will liberalise 82 per cent of Mercosur agricultural imports and Mercosur will remove tariffs on 93 per cent of tariff lines for EU exports. For some products, tariff-rate quotas will apply.
Voicing their opposition to the deal, Spanish agricultural unions Asaja and UPA and the Coordination of Agricultural and Livestock Organisations (Coag) claimed it has been drawn up in haste and does not take into account the interests of European producers.
Pedro Barato, president of the Young Farmers’ Association (Asaja), told EFE that Spanish farmers “cannot accept any more trade agreements in which European agriculture is the paymaster of other interests”.
Miguel Padilla, president of Coag, described the agreement as “absolutely outrageous”, noting that Spain’s agricultural sector is once again being used as a “bargaining chip” for other commercial interests.
The deal will lower trade barriers for South American meat and grains, but producer groups fear that other key sectors for southern Europe, such as citrus, will also be impacted.
The Committee of Professional Agricultural Organisations - General Confederation of Agricultural Cooperatives (Copa-Cogeca) said the agricultural chapter of the deal is unbalanced.
In France, Arnaud Rousseau, head of the country’s powerful FNSEA association, said the agreement “risks having dramatic consequences for agriculture”. He warned that lower environmental and food safety standards meant Brazilian meat would massively undercut European production.
The French government has already announced it will not ratify the text, while Poland, Italy and Ireland are amongst the countries that also oppose it.
However, Spain’s agriculture minister, Luis Planas, called the agreement a great economic opportunity for Spain’s agricultural sector. “Spain stands to gain from it. Our agri-food sector will be strengthened by this opening up to a continent with which we have cultural and linguistic ties,” he said.
John Clarke, until recently the EU’s top agricultural trade negotiator, told Politico that the deal offers a net gain for Europe’s agri-food industry.
“The pigmeat sector does very well out of the agreement. Ditto the dairy sector, wine, spirits, beverages and virtually all processed agricultural products: jams, preserves, biscuits, breakfast cereals, infant formula, pet food,” Clarke said.
The European Commission said the deal will strengthen the EU in the face of China’s growing influence in Latin America and the world.
