The EU-MERCOSUR trade agreement raises particular discontent in countries with large and influential agricultural sectors. There are fears of disproportionate competition from cheap suppliers from South America, who operate under different environmental standards.
The signing of the trade agreement between the European Union and the South American common market MERCOSUR (which includes Argentina, Brazil, Paraguay, and Uruguay) has been postponed until January, reports Politico.
Initially, the document to establish a free trade zone, negotiations for which have been ongoing for a quarter of a century, was planned to be signed this coming weekend.
Unable to reach a consensus on the text, EU members decided to take additional time for coordination. The balance of power in the bloc was altered by Italy, which at the ongoing EU summit in Brussels called the immediate signing of the deal with MERCOSUR premature.
Farmers Want Reciprocity
The draft agreement between the EU and MERCOSUR raises particular concerns in countries with large and influential agricultural sectors, especially in France and Poland. There are fears that European farmers will not be able to compete with cheap imports from Latin America. This viewpoint has been confirmed by strikes and protests from European agrarians themselves.
In this context, Italian Prime Minister Giorgia Meloni joined the ranks of the doubters, suggesting to wait for the final agreement on a package of additional measures to protect the agricultural sector and discuss it with industry representatives. "This does not mean that Italy intends to block or oppose the agreement, but rather that it intends to approve it only when it contains adequate reciprocal guarantees for our agricultural sector," emphasized Meloni.
These are guarantees that the European Commission promises to European agrarians at France's request. They concern the protection of their interests in case the influx of imports from MERCOSUR countries becomes disproportionately large.
French President Macron insists on enshrining the principle of reciprocity regarding environmental standards in agricultural production in the agreement. He reminded that French farmers have complied with all EU directives on chemicals and pesticides. "This has often cost them money and complicated their lives. And today we want to open our market to people who do not adhere to these rules. This is absurd; no one can understand this," he stated.
The European Commission is lobbying for the conclusion of a deal that will create one of the largest free trade zones in the world, with access to over 700 million consumers. Brussels' position is actively supported by exporting countries led by Germany.
