Ther has been a struggle over this for years, and recently there have been violent protests in France. Teh Mercosur agreement has now been passed under EU Commission President Ursula von der Leyen.
Europe has always been a trading continent, but we now live in a world were trade barriers are increasing. Our businesses and farmers face increasing restrictions, unfair competition and geopolitical uncertainties, all of which threaten their competitiveness. The new partnership between the european Union and Mercosur offers an opportunity to counter this trend.That’s why I traveled to Montevideo this week to finalize our negotiations and unlock the value of working more closely with a large, fast-growing market of over 260 million people.
We listened to them all carefully and addressed every single concern directly over five years of negotiations. The agreement we have now reached offers the strongest protections ever included in a trade agreement. It protects our most significant economic sectors, including agriculture and food. It protects our consumers by ensuring compliance with high standards. And it puts protecting our planet and its green lungs at the forefront. This is not the same agreement as five years ago because it has been considerably changed. Today we can confidently say: This is a better deal for the people of Europe.
This new partnership comes at a crucial time for Europe. The world has become more fragmented and confrontational than before. Last year, trade restrictions worldwide more than tripled in value. To overcome these challenges, we need to forge closer relationships with like-minded partners.
The European Union and Mercosur together will form a market of 700 million people. First of all, this will bring immediate benefits to tens of thousands of European companies (half of which are small and medium-sized) that already trade with latin America. Mercosur’s tariffs on European products are high: 35% on fashion, 27% on wine and up to 55% on other agricultural and food products. The agreement will eliminate almost all tariffs on all goods,saving EU exporters up to €4 billion a year and opening this dynamic market to European exports.
It is also the most comprehensive agreement ever negotiated to protect European food and drink. More than 350 European products are protected by geographical indications. This means that in the future it will be illegal to sell imitations or counterfeits. Such as, only original Dresden Christmas stollen, Bavarian pretzels and Black Forest ham from Germany can be sold in Mercosur supermarkets.For the first time, European inspectors will have the opportunity to check this.
Thanks to this agreement there will be new protections for European farmers. We have negotiated import caps for certain agricultural and food products: Imports from Mercosur will only make up a small part of European consumption – 0.1 percent for pork and 1.5 percent for beef. What is crucial, however, is that Mercosur exporters must adhere to the same strict standards as European producers. To ensure this is always the case, we have agreed on stricter controls and closer cooperation with local authorities in Mercosur countries.
The European Commission will closely monitor market developments following the implementation of the agreement, particularly regarding the agricultural sector. We will ensure that the partnership with Mercosur is beneficial for both European farmers and European consumers. In the unlikely event that the implementation of the agreement has a negative impact on the agricultural sector in Europe, we intend to set up a reserve of at least one billion euros.This is our insurance for our farmers and rural areas. We will work with the European agricultural sector to launch new measures to simplify procedures and reduce administrative burdens for the sector.
What are the main concerns of farmers in Europe regarding the Mercosur agreement?
Interview Between Time.news Editor and Trade Expert
editor: Welcome to Time.news! Today, we’re delving into a hot topic that’s been causing quite a stir in Europe and beyond—the recently passed Mercosur agreement under the leadership of EU Commission President Ursula von der Leyen.Joining us is Dr. Carla Martinez, a renowned expert on international trade and lasting economic growth. Carla, thank you for being here!
Dr. Martinez: Thank you for having me! It’s a pleasure to discuss this notable subject.
Editor: Absolutely! Let’s start with the protests we’ve seen in France in recent weeks regarding this agreement. What do you think are the underlying concerns driving this backlash?
Dr. Martinez: The protests largely stem from fears about how the Mercosur agreement could impact local industries,particularly agriculture. Many farmers worry about the influx of South American products, wich they fear could undercut prices and jeopardize their livelihoods. Ther’s also apprehension about environmental standards and how closely aligned they are between trading partners.
Editor: That makes a lot of sense. You mentioned the importance of environmental standards; can you elaborate on that?
Dr.Martinez: Certainly. The Mercosur bloc, which includes countries like Brazil and Argentina, has faced criticism regarding deforestation and agricultural practices. Many in europe are concerned that increased trade could exacerbate these issues. The challenge we face is balancing the need for economic growth with sustainable practices that protect our planet. It’s a complex issue, but one that needs urgent attention.
Editor: Indeed.the EU has historically been a trading power, yet we’re witnessing a rise in trade barriers. How does the Mercosur agreement tilt the scales in this context?
Dr. Martinez: The agreement presents an opportunity for Europe to enhance its global trade stance amidst rising protectionism. By partnering with Mercosur, the EU can tap into a fast-growing market of over 260 million people. This partnership can potentially mitigate the risks associated with geopolitical uncertainties and trade barriers by diversifying trade relationships and reducing reliance on traditional markets.
Editor: It sounds promising, but how can the EU ensure that this partnership remains competitive while addressing the concerns of its farmers and local industries?
Dr. Martinez: Openness and dialog are key. The EU must engage in discussions with local farmers, businesses, and environmental groups to develop policies that protect their interests. Additionally, there’s an opportunity to leverage this partnership to enhance agricultural standards and promote sustainable practices within mercosur countries, creating a win-win for all parties involved.
Editor: That’s a constructive approach! As we look ahead, what do you think are the potential long-term impacts of the Mercosur agreement on European economies?
Dr.Martinez: If managed properly, the agreement could substantially boost trade and investment, leading to economic growth and job creation.It can also enhance cultural exchanges and innovation as markets become more interconnected. However, it’s vital that Europe actively addresses the concerns of its citizens to avoid further polarization and unrest.
Editor: Thank you, Carla! It’s clear that while the Mercosur agreement holds promise, it also poses significant challenges. As we navigate these waters, your insights will undoubtedly be invaluable. We appreciate you sharing your expertise with us today!
Dr. Martinez: Thank you for having me! It’s essential that we keep these conversations going as we shape our economic future.