The European Council today (Wednesday, November 19) approved a proposed regulation implementing safeguards for agricultural products under the EU-Mercosur trade deal.

In October, the European Commission proposed a regulation to strengthen protections for EU farmers in the context of the EU-Mercosur Partnership Agreement (EMPA).

According to the commission, in practice, they provide an additional layer of certainty to EU farmers beyond the phase-in of targeted quotas that have been agreed with Mercosur for imports in sensitive sectors.

The controversial trade deal will allow 99,000t carcass weight of Mercosur beef - mainly from Brazil - to enter the EU at a much reduced tariff rate of 7.5%. The quantity of beef under this quota will be phased in over a five-year period.

Safeguards

The proposal outlines procedures which the commission said will guarantee the timely and effective implementation of bilateral safeguard measures for agricultural products.

It also includes specific provisions as regards certain sensitive agricultural products such as beef, poultry, rice, honey, eggs, garlic, ethanol, and sugar. 

The commission said the regulation builds on existing EU safeguard tools but introduces faster procedures and simpler triggers to protect EU farmers.

Investigations can be launched at the request of member states or industry when there is evidence that imports are rising sharply or affecting EU markets.

For sensitive products such as beef, poultry, dairy, sugar and ethanol, a price undercut of 10% by products coupled with either a 10% increase in preferential import volumes or a 10% drop in import prices will be treated as a rule as sufficient grounds to launch an investigation.

The commission investigation will examine factors such as import volumes, price trends, and the impact on production, sales, employment and profits in the EU sector affected.

For sensitive products, investigations will conclude within four months and in urgent cases, provisional measures can be introduced within 21 days.

The commission committed to regularly monitor imports of identified sensitive products and report every six months to the European Parliament and the Council on market developments.

Mercosur

The EU Commission decided to support the proposed regulation without introducing any amendments.

The council added that the decision is without prejudice to the ongoing discussions within the council on the signature and conclusion of the EU-Mercosur Partnership Agreement and interim Trade Agreement.

Once the parliament adopts its position, the co-legislators will finalise the work on the safeguard regulation, the council added.