The EU-Mercosur agreement is already dated, by the end of this year at the earliest! Of course, it will not be easy. United States, United Kingdom and even the refusal of many European producer associations are obstacles to get to this signature. Do you want to know the advantages and disadvantages? Here we tell you everything.
Mercosur and the European Union
To begin we are going to talk about Southern Common Market. Also know as Mercosur, it is a common space created to create business opportunities. Initially formed by Argentina, Brazil, Paraguay and Uruguay. Later Venezuela and Bolivia joined. The advantages he proposes are of interest to the European Union that, since 2000, has been negotiating free trade with him. Trying to create a bi-regional area.
However, current events do not accompany a possible EU-Mercosur agreement. The United States conducts a protectionist policy that complicates multilateralism. In addition, the economic crisis that has accentuated the covid has dragged many countries that copy the tactic of Donald Trump.
Not enough with this the European Union depends on the results of Brexit. In other words, the talks on trade relations with the United Kingdom are decisive. Therefore, its implementation is going to be complex. It will be full of obstacles, to which is also added the policy of the Brazilian president, Jair Bolsonaro. Nevertheless, the european commission keep trying. Marking union as objective, minimum, at the end of 2021.
What changes?
With more than two decades the EU-Mercosur agreement is still in the process of negotiations. It is a document of more than 7.000 pages and would affect more than 780 million people. Establishing the largest free trade zone in the history of the European Union. But how would it affect us?
Agricultural products
With this agreement both communities would win. Mercosur would be able to reduce its shipping rates for fruits and vegetables. In addition, your tributes for soy products would be suspended. Other products could also be added to these conditions, such as: beef and poultry, rice or sugar.
On the other hand, hethe EU would have a perfect opportunity to demonstrate its quality. This is due to the mandatory respect for the protection of denominations of origin. In total, the European Community has 350. However, the representatives of European agriculture are reluctant to these treaties. Given the good reception of the Mercosur associations.
Delicate matters
A latent concern among European farmers and ranchers is the production standards. And it is that these are different depending on the side of the Atlantic in which you are. Thus They ask for reciprocity between the elements exchanged. Both in animal and vegetable production. "The concern about the possible entry into the EU of new pests " supports the Business Association for Plant Protection (Applea).
That is why they applaud the implantation of strict rules. For example, a chapter within the text of the agreement establishes sanitary and phytosanitary measures. In relation to plant health. One of those rules is that each block of countries will have to provide a list of pests, regulated products and phytosanitary import requirements.
🔊 "For Spain, the agreement between the EU and Mercosur is a priority."
👉The @SE_Commerce takes stock of his recent official visit to #Brasil in the economic newspaper @economic value and analyzes the commercial relations between 🇪🇸🇧🇷.https://t.co/4ebTQdPWVt
- Secretary of State for Commerce (@SE_Comercio) November 3, 2021
In the sense of animal welfare and the environment, the agreement wants to stick to the European agenda. Following the rules of the World Organization for Animal Health (OIE). While the Spanish Association of Beef Beef Producers (Asoprovac) does not fully trust this cooperative. Arguing that the EU has a lot of legislation on this matter. However, other countries, such asBrazil, it has not developed them. Being this a great producer of this meat.
and in Spain?
The Ministry of Agriculture, Fisheries and Food of Spain has specified that the trade balance is in deficit. Exactly about a difference of 2.800 millones de euros. It offers advantages for the agri-food sector. Given that reduces tariffs in sectors such as wine, spirits, soft drinks, chocolate, dairy, fruit, vegetables or olive oil.
Regardless of this, Spanish producers are concerned about the entry of beef or different types of orange juices, for example. For this reason, various associations such as Asaja o COAG does not share the enthusiasm of the pact. In addition, they ask for reciprocity. In other words, imported food follows the same production model.
Our conclusion is that whatever opening up to other markets is beneficial. Either liberalizing markets or eliminating tariffs. However, we also understand the point of view of European producers. From what we think it is a proof that shows the same quality and production process is necessary. We made it clear that the EU-Mercosur agreement is positive, as long as all the requirements are met. What do you think? We read you.
