After 20 years of negotiations, on June 28, 2019, The EU and Mercosur reached an agreement in principle to have an Association Agreement. This is a mixed agreement, which will include three fundamental pillars: political dialogue, cooperation and trade. More than five years later, with the celebration of the G20 Summit in Rio de Janeiroit seems that the total pact between the European Union and the South American trading bloc is imminent.
The prospect of having to compete with the Latin American bloc has put on alert to the European agricultural associations, generating unrest due to the economic earthquake what lies ahead for their companies.
French farmers on the warpath
In France, in protest against this situation, farmers yesterday used their tractors to block roads throughout the country. In turn, they urged Macron to take action regarding the agreement, which the French government rejects.
The President of the Republic himself, Emmanuel Macrondefended his farmers’ opposition during a visit to his Argentine counterpart, Javier Milei, in Buenos Aires, before heading to the G20 summit in Rio. “It will not be at the expense of our farmers,” said the president.
Yohann Barbespokesperson for the majority alliance of agricultural unions (FNSEA-JA), the association responsible for calling the protests, estimated that their scope “will again be unprecedented». “We feel that farmers remain angry at a government that is slow to react.” This Tuesday the protests have intensified. More than a hundred farmers left the town of Beziers towards the Spanish border with Perpignan, where they intend block traffic for several days.
Frontal rejection by farmers
In Spain, although farmers have not mobilized, they do show their deep concern about the impact that the agreement will have.
Jose Manuel Rocheresponsible for the Small Farmers Union (UPA), explains to ABC that from the overall calculation it is a good agreement, since it raises a consideration to Trump’s new tariff policy. However, the agricultural sector detects a series of important threats. From the governments, he explains, They have never contacted the sector to discuss the details of the agreement. Therefore, they reject it completely.
From UPA, they ask the Commission for an increase in transparencyin order to know the full text of the agreement. If there are points that harm the Spanish sector, they ask that they be modified. They demand that they prevail the interests of the EUas well as the control of production conditions through the application of mirror clauses.
In turn, they pray that the tranquility and stability of farmers be guaranteed, so that they can look ahead and act with confidence. Finally, they emphasize that the agreement with Mercosur is not the only disruptive circumstance they face. Trade tensions with China and its result in the pork sector and the consequences of the war between Russia and Ukraine have greatly affected the agricultural sector.
For its part, Andoni Garciaresponsible for the organization of the Coordinator of Farmers and Ranchers Organizations (COAG), coincides with the UPA valuation. They consider that the reduction of tariffs and the importation of products under the proposed conditions produces a disastrous impact in the sector. They consider, in statements to ABC, that the EU intends to replace local production, sinking the internal prices of an already severely damaged sector, and they agree that the production conditions are diametrically opposed, generating unfair and unequal competition.
With the little data that the Spanish Government has provided them, they declare that they have carried out studies that prove the negative impact of the agreement. This Tuesday, the head of fruits and vegetables at COAG, Andrés Góngorahas demanded in the Congress of Deputies the immediate suspension of the agricultural free trade agreement between the EU and Morocco.
«We see with astonishment and indignation how the EU and the Spanish Government are surrendered to the demands of a counterpart, Morocco, which uses a negotiating profile based on blackmail, in which terrorism, immigration and drugs are used as arguments to obtain compensation. These counterparts put at risk the future of EU farmers, of whom we are obvious bargaining chip. But they also harm the interests of EU taxpayers who do not receive the corresponding customs revenue for imported products,” he alleged. Gongora.
For its part, the Agrarian Association of Young Farmers (ASAJA), has expressed through a statement its absolute rejection of the agreement. Together with European farmers, gathered in Romania for their 11th Congress, they underline their deep concerns about the pact.
From ASAJA they refer to the EU proposal to create a «compensation fund» aimed at appeasing European farmers. They declare that it seems like a false quick fix, as well as a provocation, since it in no way resolves the problems raised. They urge the Commission to stop distract the debate and take seriously the conclusions reached by farmers, raised in the report on the Strategic Dialogue on the Future of Agriculture of the EU, which underlines the need for the Commission to “undertake a comprehensive review of their negotiation strategies”, as well as the need for a greater level of reciprocity.
Regarding institutional reactions, it has been the Minister of Agriculture, Fisheries and Food, Luis Planas, who has defended the trade agreement with the Mercosur countries. The minister has declared that it is an agreement beneficialimportant in the framework of current geopolitics, especially after the result of the US elections.
When asked about France’s rejection of the agreement with the Mercosur bloc, the minister was clear: “Each member state defends what it believes is appropriate, but I believe that there is a certain mythology around Mercosur that does not seem to me to be appropriate to the reality of the agreement or to the moment we are living in,” he stated.
The minister explained that, in the case of Spain, “they are only sold to Mercosur.”400 million in agri-food products, while they are imported 4,000». According to his assessment, it represents a “very unbalanced” balance.
In this sense, he considers that the European Union must ask itself if at this time it is interested in “locking in on itself”, or on the contrary, “expand the network of agreements with third countries to maintain their economic and commercial influence.” »I believe that the answer is very clear and Spain has been very clear about it from the beginning«, the minister stressed, ratifying the government support of Spain to the trade agreement.
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