We have talked about Mercosur so many times and here we are again.
With the European Council realms now with the Spanish presidency, which is fully committed to bringing this deal across the line and the upcoming EU-Latin America Summit, it is the right time to reiterate the long-standing concerns we have with this agreement.
Since the EU and Mercosur states (Argentina, Brazil, Paraguay, and Uruguay) reached a political agreement on June 28, 2019 on a comprehensive trade agreement, it’s an understatement to say that a lot has changed, in the EU and globally.
Mercosur
This agreement in principle, concluded under the president of the European Commission Jean Claude Juncker in 2019, takes no account of the changes and initiatives that have stemmed from the EU Green Deal – the flagship policy of president Ursula von der Leyen’s commission.
It equally takes no account of the changing landscape in which farming operates nowadays, following the Covid-19 pandemic and the impact of the war in Ukraine.
In fact, the overly ambitious approach of the commission does not only make it hard for us European farmers, but it also makes us look unrealistic in the eyes of our trading partners.
Since the beginning of the year and the election of President Luiz Inácio Lula da Silva Lula in Brazil we have been hearing of the golden window of opportunity for the ratification of this deal.
But the facts say otherwise; just a few weeks ago, President Lula made it clear that he does not want – or cannot – endorse the high environmental commitment that the EU wants parallel to the Mercosur agreement.
It seems that for geopolitical reasons and in the interest of some industries, the commission is ready to turn a blind eye on the impact it would have on the agriculture sector and the negative perception it would have at the moment when we are gearing up for the next European elections.
European policy
Since the 2019 political agreement, we witnessed an acceleration in the EU with the development of the European Green Deal.
Dozens of regulatory initiatives impacting agriculture are currently under discussion in Brussels at a breakneck pace. They will begin to have a real impact on our farms and cooperatives in a few years’ time.
Even with the ambitions of the additional instrument on sustainability, which most likely will not feature any serious enforcement measures, it is clear that the EU cannot ask from the Mercosur countries the same on-farm production standards that it aims to impose on its own farmers.
The differences in farming realities between the EU and Mercosur countries, on a sheer scale if nothing else, are immense. The same goes for farm level production standards.
Does the commission intend to propose the Nature Restoration Law for farm operations in Mercosur countries too?
Does it believe it can impose its ambition of cutting 50% of pesticides use elsewhere?
Does it think that the animal welfare standards applied in the EU can truly be imposed and controlled in Mercosur countries?
There is a widening gap between EU’s climate and sustainability goals linked to the agriculture sector and what it is ready to turn a blind eye to when it comes to trade agreements.
Fair trade
As Copa and Cogeca we support international trade, provided that it is fair, balanced, and transparent.
However, we cannot accept, under any circumstances, that European standards are weakened or that any European farmer is penalised in the market for following them.
Despite the access granted to EU products, such as wine, dairy, olive oil, some fruits, vegetables and geographical indications (GIs), the Mercosur agreement is unbalanced in its agricultural chapter, especially affecting the already fragile agricultural sectors such as beef, poultry, rice, orange juice, sugar, and ethanol.
It also adds to the concerns about the cumulative and difficult to quantify impacts of all the agreements already signed by the EU and even more so when considering those in the pipeline.
With the further implementation of the Green Deal, the gap in standards applied to the EU and Mercosur farmers will just increase.
This widening is untenable for European producers, and the Mercosur agreement will only exacerbate this problem as this agreement was designed years before the launch of the Farm to Fork strategy or the war in Ukraine.
It was unacceptable then and it is even more so today.
As presidents of Copa and Cogeca we will continue to denounce this agreement, and we call on the commission to clearly start addressing these fundamental issues and not to add salt to an open wound.
From Copa president, Christiane Lambert and Cogeca president Ramon Armengol.