“One steak per person per year.” The Government is trying to reassure European livestock farmers who are up in arms against the trade agreement that was closed with Mercosur last Friday. The Minister of Economy, Carlos Body, has defended that the text closed by the European Commission, which is opposed by countries such as France, Holland or Poland, includes a limitation on certain imports from that community bloc. Specifically, one of the sensitive products is beef.
“The protection through the regulation that will be established is a limitation on the amount of beef imports. ”This limitation will mean one fillet per person per year, which could be imported by the European Union. I believe that this attests to the potential impact that it could have and the protection that our sector will also have in the future,” Corpus said upon his arrival in Brussels, where he is participating in a meeting with his eurozone counterparts.
The great fear of the European primary sector is that the elimination of tariffs that will facilitate the entry of cheaper products into the market will take its toll on producers from the old continent. Hence, safeguards have been introduced in the final agreement that will limit imports of sensitive agri-food products from Mercosur through the gradual inclusion of quotas. In the case of beef, which is one of the most sensitive, it will be limited to 99,000 tons. “This corresponds to approximately 1.6% of current EU beef consumption,” say community sources, who point out that the tariff will be 7.5% and not zero.
Body has assured that the agreement is “good news” for Europe and for Spain. In fact, it estimates that Spanish exports to the Mercosur countries (Argentina, Brazil, Uruguay and Paraguay) will increase by 40%. The European Commission also estimates the savings in tariffs for European companies at 4,000 million. And Corpus has aimed at creating 20,000 jobs throughout the bloc in the first year of the agreement’s entry into force, which does not yet have a date because it also requires a majority within the EU, which at the moment does not have. with the opposition of France, Poland, Holland and Italy, as well as validation in the European Parliament.
“We see that the benefits of this free trade area are tangible,” added Body, which has assured that the agreement will improve supply chains or access to strategic products for the climate and digital transition. “As for the agricultural sector specifically, I believe that we have a sector that is well prepared and that will remain well protected once the Mercosur agreement is ratified,” added the minister, who assured that “all regulations” will continue to be complied with. related to border control, health or intellectual property.
Body has assured that the Government will request the fifth payment of European funds before the end of the year and has considered the tax reform completed after the agreement for the bank tax and the extension of the electricity company tax. The review of the Spanish fiscal plan that the European Commission published two weeks ago approves the figures calculated by the Government according to which the fiscal changes will represent 0.3% of GDP (about 4.5 billion euros). The non-deflation of personal income tax is added to this evaluation as additional income of 0.1% (1,500 million) and the European Commission expects the lifting of a tax benefit by the end of 2025 that represents another 0.1% and is expected to be the one that affects diesel.
The minister also recalled that an addendum was presented to bring forward 50 milestones and objectives for the fifth disbursement that were initially planned for later (sixth, seventh and even eighth), but which have already been put into action. “We already fulfilled them in advance and we hope that this can also be part of the positive evaluation that the commission can make on this fifth disbursement,” said Corps.
Negotiate budgets “until the last minute”
He has also shown confidence in carrying out the General State Budget, despite the obstacles put in place by Carles Puigdemont, who has raised the price by proposing that Pedro Sánchez submit to a question of trust. The Minister of Economy has said that he will work “until the last minute, until it is possible” to reach an agreement.
“I am always optimistic regarding the ability we have to reach an agreement also on budgetary matters. And I base myself on the data, on previous evidence. In recent weeks we have reached important agreements,” he said about the tax reform.
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