The trade agreement between the European Union (EU) and Mercosur can boost Spanish sales of the most exported products such as olive oil and wine, although it generates rejection in other sectors such as fruit and vegetables and livestock due to the impact they may have. imports.
Spain is in favor of ratifying this pact, signed in 2019, although several European countries led by France oppose and they demand more guarantees from the South American bloc in negotiations that have once again gained momentum in this final stretch of the year.
The agreement is expected to liberalize 99% of EU agricultural trade and that Mercosur opens its market to 88% of community agricultural goods.
Spanish agri-food and fishing exports to Mercosur (Brazil, Argentina, Uruguay and Paraguay) increased in value by 5.4% annually in 2023up to 420 million euros, while imports decreased by 29.4% (4,094 million).
The trade deficit grew 32%standing at 3,674 million, according to a recent analysis by the Ministry of Agriculture, Fisheries and Food (MAPA).
The most exported Spanish products in 2023 they were olive oil, wine and must, and stone fruits; On the import side, soy beans and cakes, and corn stood out.
Oil
The general director of the olive oil export industry association Asoliva, Rafael Pico, considers that any agreement that liberalizes trade is “attractive”compared to the high tariffs currently imposed by some Mercosur countries.
However, it shows its concern about Brazil, the main South American importer of olive oil, since it will be necessary to see if exports from countries like Argentina, Chile and Peru go there. to the detriment of the Spanish.
Came
Sources from the Spanish Wine Federation (FEV) assure that the EU-Mercosur pact can help diversify markets and make it easier for companies to make businesses in countries that, until now, had closed.
The sector would be favored by the gradual elimination of tariffs on still and sparkling wine; the protection of 357 European geographical indications for wines, spirits, beers and foodstuffs; rules to facilitate wine trade; and a dispute settlement system between the parties.
Fruit
The Spanish Federation of Associations of Fruit and Vegetable Exporters (Fepex) sees a possible “negative” effect of the agreement because “an impact analysis is missing on the community fruit and vegetable sector and there is still a lot of opacity”.
Still the conditions of tariff disarmament are unknown of each chapter and items, according to Fepex, which highlights that access for community production to the Mercosur market is not guaranteed, whose countries require the negotiation of phytosanitary protocols by product to allow the entry of fruits and vegetables, unlike in the EU. .
Between January and August, Spain exported fruits and vegetables to the bloc for 39 million euros and imported them for 149 million. according to the federation.
Feed
The general director of the feed manufacturers association Cesfac, Jorge de Saja, states that Spain, with a “strongly unbalanced” balance in animal feed, needs access to raw materials that it cannot produce.
“The Spanish industry has benefited and it needs that openness to maintain competitiveness. Although it is not a perfect agreement, we believe there is more to gain than lose,” he adds.
Cattle raising
The manager of the Spanish Association of Beef Producers (Asoprovac), Matilde Moro, believes that the signing of the agreement would aggravate the “delicate” situation of European cattle farming and would accelerate job loss and of value in its rural environment.
From the production of forage and other foods for livestock fattening to antibiotics, animal welfare or traceability, the regulations applied in Mercosur are “often much more lax than those of the EU”which acts with “hypocrisy” while boasting of leading the fight against deforestation, climate change and antibiotic resistance, according to Moro.
Blockade on the border with Ukraine
This Saturday, Polish farmers blocked the Medika border crossing, located on the border with Ukraine and one of the most important in the countrywithin the framework of a new protest against the Government’s agrarian policy and the signing of the agreement between the European Union and Mercosur.
The protesters They have thus prevented the entry of trucks into Polish territoryalthough they have allowed one of these vehicles to leave every hour from the Polish side towards Ukraine. This measure, however, does not apply to passenger cars or military or humanitarian vehicles.
The protesters criticize the Government of Prime Minister Donald Tusk for not fulfilling their tax promises for the farmers, who say they are thus showing solidarity with those from other countries, who also oppose the signing of the agreement between the EU and the Mercosur countries, according to information from the Polish news agency PAP.
As they have expressed, This pact would destroy European agriculture given that in the Mercosur countries the same legislation is not respected as in the countries of the community bloc, a situation similar to that which occurs with imports of Ukrainian agricultural products.
Blockades on the border with Ukraine have been occurring regularly during the last year given the exemptions imposed on Ukrainian imports in response to the Russian invasion of the territory, a measure that has not gone down well in some EU countries.
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