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MERCOSUR trade deal – an outdated agreement that lands far from Farm to Fork ambitions

09 August 20236 min reading

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. 


Christiane Lambert
Copa President 




Ramon Armengol
Cogeca President 

We have talked about Mercosur so many times and here we are again. With the 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 28 June 2019 on a comprehensive trade agreement, it’s an understatement to say that a lot has changed, in the EU and globally. 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 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 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.

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 their 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.
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 penalized in the market for following them.

Despite the access granted to EU products, such as wine, dairy, olive oil, some fruits, vegetables and GI’s, 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.

As already denounced in the previous opinion piece on this topic, 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.

EU. Together, we ensure that EU agriculture is sustainable, innovative and competitive, while guaranteeing food security for 500 million people throughout Europe. 



ABOUT COPA
Copa (the Committee of Professional Agricultural Organisations) represents over 22 million European farmers and their family members in a combined effort with its members to promote the best interests of the agricultural sector among the EU institutions and other relevant stakeholders. Its objectives are; 1- Represent European farmers in a combined effort with its members in order to promote the best interests of the sector among EU institutions and other relevant stakeholders; 2- Develop effective strategic policies and initiatives to raise awareness for the multifunctional role of farms and promote a decent income for farmers; 3- Act as the central network for farming issues for its members and provides a platform for exchanges to develop solutions to any technical or trade barriers within the EU and beyond; 4- Communicate with a view to maintaining a strong presence within the EU public discourse by explaining its positions and showcasing its efforts towards the development of an agricultural and forestry sector that benefits everyone; 5- Participate in every relevant international platform in order to promote and disseminate the positions of European farmers.

ABOUT COGECA
Cogeca (the General Confederation of Agricultural Cooperatives) represents the general and specific interests of European agri-food, forestry, and fishery cooperatives among the EU Institutions and other socio-economic organisations contributing to European decision making. Its objectives are; 1- Represent the general and specific interests of European agri-food, forestry and fishery cooperatives within the context of the EU institutions and other socio-economic organisations contributing to European decision making; 2- Strengthen the network of European agri-cooperatives and promote their business cooperation; 3- Contribute to legal, economic, financial and social analyses of interest for agri-food, forestry and fishery cooperatives; 4- Facilitate the exchange of best practices and set up platforms for dialogues on strategic business development in order to find appropriate solutions for current and future challenges and grasp arising opportunities; 5- Promote and showcase innovative solutions to create added value that benefits farmer-members, society, the environment and consumers.





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