The EU and Mercosur recently inked a historic trade agreement that has sparked debates from farmers in the EU. Let’s delve into the details of how this deal might affect Mercosur and EU farmers.
- Benefits for EU Farmers:
- Agricultural products from the EU will reach new consumers in Mercosur nations, opening up new markets for EU farmers.
- The agreement will see lower duties for imports of beef, poultry, sugar, and rice. Despite concerns, the import volumes are relatively small compared to total production.
- An estimated 99,000 tons of beef, 1.4% of poultry, and 1.2% of sugar will be imported by the EU at reduced duties, benefiting consumers.
- Impact on Farmers:
- The deal might necessitate sectoral adjustments, particularly for beef, poultry, and sugar producers in the EU. However, safeguards are in place to mitigate any adverse effects.
- The 99,000 tons of beef imports will likely replace existing imports from Mercosur at cheaper rates, not significantly increasing the total amount of imports.
- The deal will be phased in over five years, providing time for EU farmers to adapt and financial resources may be allocated to aid affected farmers.
- Overall Benefits:
- The EU Commission has protected over 350 products, safeguarding European specialties from imitation in Mercosur nations.
- Studies show that the EU agri-food sector is poised to benefit significantly from this agreement, with projected gains in exports and imports by 2032.
- Despite some vulnerabilities in specific sectors, the deal is expected to bolster the EU’s position as a leading exporter of agri-food products worldwide.
In conclusion, the EU-Mercosur trade agreement holds the promise of expanding markets, benefiting both EU and Mercosur countries. While concerns exist regarding certain sectors, the overall impact is expected to be positive for farmers in the EU and contribute to the EU’s economic growth. As global trade dynamics evolve, such agreements become crucial for securing stable and prosperous economies.
Leave feedback about this