
- Prof. Ambroziak: there is no doubt, that the entry into the life of the agreement will cause some shifts of the agricultural-food trade in the EU.
- List of products excluded from liberalization. This is primarily meat from females, lambs and goats, with the exception of dried meat, which has been subjected to a tariff quota. This is some types of milk in powder and cream, buttermilk, sugar, milk products for greasing, wheat durum, wheat with the exception of seeded wheat, and also beef sugar, because cane sugar for refining has been subject to a tariff quota.
- “The biggest threat to EU producers of food will be unequal conditions competing with South American producers. Well Mercosur countries can produce food cheaper, because producers from those countries do not have to meet a series of production standards, which must be met by EU farmers.”
- The trade EU with Mercosur countries is characterized by large asymmetry of turnover. – From one side we have significant exports. The European Union in 2023 year exported to Mercosur countries products worth 3.3 billion euros. On the other hand it imported from there products worth over 24 billion euros. Poland exported products worth just 72 million euros, while imported products worth over a billion 700 million euros. We have therefore a pronounced deficit in trade with those countries – emphasized prof. Ambroziak.
“Between Brussels and Kiev” is a specific fiction, where the author presents his opinion on an important topic. Artifacts he presents together with numerical data which are shown both in the film, as and in the article. Based on concrete numbers, which they share with the State. Today the guest of cycle is dr hab. Lukasz Ambroziak, professor of IERGŻ PIB. Very insightfully presents on facts and myths about the trade agreement between the EU and Mercosur. I am very concerned about that that they should resonate one in the wide discussion on that topic. – there is no doubt, that the entry into the life of the agreement will cause some shifts in the food trade in the EU. The abolition or reduction of customs in imports of commodities covered by quotas may
reduce not only imports from other countries third to the EU, but also supplies between individual member states of the EU. The most concerned is the meat, dairy and sugar industry, notes dr hab. Ambroziak. More detailscan be found in the video below.
Myths about the Agreement EU – Mercosur and the impact on the agricultural-food market
are undeniable, that in the last few weeks there has been a heated discussion on the impact of the free trade Union Mercosur on the agricultural-food sector of the European Union, in this also obviously on the agricultural-food sector of Poland. – In the discussion there have been many of the arguments, which in my conception are often exaggerated, and some even are not true. Today I will reference to the most important ones. First the content of the contract is known in principle as of June 2019 . There is no truly consolidated text of the contract, there are known individual fragments of it. Some fragments have been added after the last negotiations, which were completed in December. But most content of the agreement was known from 2019 year. It is not true that, that Chair of the European Commission Ursula von der Leyen signed the agreement with Mercosur countries during her visit to Uruguay in early December. This visit confirmed only the completion of negotiations. On the other hand the contract itself
has not been signed yet. It is also not true that we know the mode of processing this contract.
Well for the current time as long as the European Commission does not present this agreement
to member states and does indicate in how it will be adopted then there is nothing that we can still say dr hab. Lukasz Ambroziak.
As adds and about which we have already written on farmer.pl multiple times, there are different possibilities here.
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The EU-Mercosur Agreement. There are 3 models of ratifying the Agreement
– one is, that the Agreement of partnership between the European Union and countries Mercosur, will be adopted in whole as a partnership agreement and then requires unanimity in the Council of the European Union. Consent of the European Parliament and consent of National Parliaments. The second way, the second way, is to divide this agreement into the trade part and the non trade part. The trade part would be into.separated from this agreement on
partnership and could
be adopted by the Council of the European Union
by a qualified majority, that is it would have to be adopted by 15 member counting at least 65 percent. population. And there would be an opportunity for Poland, to block such agreement. Then a group, of at least four states counting 35 percent. population. Then there would be a blocking minority and it could this agreement be rejected. If however this agreement were approved, then the trade part would apply. On the other hand, the non commercial part would require acceptance of the European Parliament and National Parliament – explained the representative of IERiGŻ PIB.
His opinion is not true also, that after the entry into the European Union Mercosur agreement there will be an uncontrolled flow of food into the European Union.
– The Agreement predicts liberalization of customs, that is the abolition or reduction of customs, from one party in the import from Union Europe to
Mercosur countries, from
the other party from Union Europe from Mercosur
countries to Union Europe. This agreement includes harmonograms of liberalization, that is how the tariffs will be lifted and this agreement provides some safeguards, instruments, which are intended to prevent such uncontrolled flow of food – he added.
I yes, for first, only on at least sensitive products duties on imports from Mercosur to the European Union will be reduced on the day of the entry of the agreement. Second, on products more sensitive, duties will be lifted gradually over a period of four, seven or 10 years and only after th this transition period will the total removal of duties occur. After three, for products sensitive in the agreement there will be a href=”https://pliki.farmer.pl/i/20/36/66/203666.jpg” class=”figure-link”>
There are specifically 22 tariff quotas. What do they mean?
– Quotas mean, that free or preferential imports into the European Union will be possible only for a specified in the quota size. On the other hand outside thecontingent will be bound by the clause of most privileged. I then if it is about contingents, then for the most of these there is a gradual increasing volume of import. In the first year it will be substantially small and will increase until it reaches the target level. Unusually in the sixth, or as in the case of dairy products, in the 10 year of the contract. I there are tariff quotas provided primarily on imports from Mercosur countries to the Union beef, fresh or chilled and frozen, poultry with bone or without bone, pork, milk in powder, cheese, ethanol, honey, garlic. After quarter, the most sensitive products were excluded from
liberalization – explained
prof. Ambroziak.
Products excluded from liberalization EU –
Mercosur
Scientist provided a detailed list of products excluded from liberalization. – This is primarily meat from ovine, lamb and goat, with the exception of dried meat, which has been subjected to tariff quotas. Also excluded are some types of milk in powder and cream, buttermilk, serve, milk products for sugar, excluded wheat durum, wheat with except wheat seed, a also excluded sugar beet, because cane sugar for refining has been covered by the representative of the Institute Economics of Agriculture and Food Economics .
His opinion, the instrument to prevent the excessive influx of food from Mercosur countries will be a bilateral clause of protection, which allow to implement, reinstate duties on
imports from Mercosur countries, if there is a threat of excess imports, which may cause damage to the agricultural and food sector
in the European Union.
– It is not true that products imported from Mercosur states do not meet strict EU quality standards. Well any product allowed to the EU market, whether this is the result of production in the EU market, or this is the result of import from third countries, must meet strict standards of food safety and those standards were not the subject of negotiations between the European Union and countries Mercosur. And yes the Union may maintain their standards on this .The permissible maximum content of residue of active substances or standard for animal welfare – mentioned further prof. Lukasz Ambroziak.
As pointed out, it is not true also, that products imported into the Union will not meet standards of quality in the EU market.
Read more
Has European agriculture been sold? Lukasz Pergol about the EU-Mercosur agreement
Facts about the EU – Mercosur
What is true? – What is true is, that the biggest threat to EU producers of food will be
unequal competition with
South American producers. Well Mercosur countries can produce
food cheaper, because producers from those countries do not have to meet a series of production standards, which must be met by EU farmers. This affects primarily the use of active substances, which are banned in the European Union. Such substances may be used by South American farmers, which increases plants produced there. Similarly the South American producers do not have to meet a range of standards in relation to animal breeding, a range of standards related to animal welfare. They can use antibiotics and hormones for growth in producing animals. Those products, which are produced in South American countries can be produced cheaper, because the measures influence a more efficient their production – stated strongly in the program “Between Brussels and Kiev” dr. Ambroziak.
His opinion is true also, that the European Union does not have in sufficient mechanisms, instruments to control the production process in Mercosur countries. It is difficult for countries in the European Union to control how production is conducted.
– True it is that the European UnionIs inconsistent in its policy. from one side requires the application of rigorous methods standards related to sustainable development, prohibits the use of many active substances or imposes appropriate welfare for animals, a from the other side permits preferential import of products, which are not produced in accordance with these norms. Despite postulates from the Polish Ministry of Agriculture and Development of Village in the agreement there is no provision conditioning the granting preferences to some products, which are imported from countries Mercosur conditioning the granting of those preferences by complying with relevant production standards. Except there are only those eggs, which may benefit from preferences in import to the European Union, if the standards of good cur request are fulfilled dr hab. Lukasz Ambroziak.
How does trade the EU with Mercosur countries?
Characterized by large asymmetry rotations. – From one side we have significant exports. The European Union in 2023 year exported to Mercosur countries products worth 3.3 million euros. In contrast, it imported from there products worth over 24 million euros. Poland exported products worth just 72 million euros, while imported products worth over a billion 700 million euros. We have therefore a clear deficit in trade with those countries – emphasized prof. Ambroziak.
He added also, that 25 proc. EU imports from countries Mercosur to soybean meal, a other 15 proc. to soy and to from plants GMO.
– On average in the years 2021-2023 the European Union imported 14 million tons of soy meal from Mercosur countries and 7 million ton soy. In contrast, Poland imported over 2 millions ton of soybean meal – he added. And he stated from the future, that if these products, in our country it would not be possible to develop animal production, even poultry production. And as has concluded, this is not a negative effect on food security in the EU. On the contrary.
– True is also, that about 20 proc. EU imports from Mercosur countries were sensitive products. This was beef, poultry, sugar or ethanol. And yes on average in the years 2021-2023 the European Union imported about 200 tys. ton of beef counting in equivalent weight of carcass, which accounted for about 2.5 perc. EU consumption of this meat and processes from this meat. If we look at the tariff quota, which was established in the agreement,is the current import of beef from Mercosur is more than twice the target of this quota, which will be achieved after six years of this agreement. A the quota itself is only 1.5 percent of EU consumption.The quota is for fresh beef and frozen beef in the
target of 99
000 tons. Less more half on fresh and
chilled beef, half on frozen beef. The European Union imports from Mercosur also sizable quantities of poultry meat and processed from poultry meat. Well that on average in the years 2021-2023 imports 285 000 tons of poultry meat and processes, which accounted for about 1/3 of the whole EU imports of these products. This was about 2.5 proc. EU consumption of poultry meat. The target quota for imports of poultry from these countries is 180 000 tons, and therefore is a exponentially lower than already in force. The current quota, which has been possessed by Brazil in imports of poultry meat to the countries of the European Union is not fully used – assessed Prof. Lukasz Ambroziak.
He also noted that it is true that that the Free Trade Union – Mercosur agreement will cause shifts in the EU agricultural and food trade. His opinion may reduce imports from other third countries to the benefit of Mercosur countries, and also there may be a reduction in the movement between member states of the European Union. Here he sees a large threat to the Polish agricultural and food sector. Products agricultural and food products, which will transfer from Mercosur countries to the European Union, may displace
those that are
exported by Poland. The greatest threat is to beef,
poultry sugar and dairy products.
Balance gains and losses in the agreement between EU a Mercosur
– Talking about agreements about free trade Union Europe, there is a need to look at the benefits of these agreements globally and comprehensively. You cannot limit only to one sector. This
agreement on free trade the European Union Mercosur is valid for the Union from the view geopolitical point, because it is such
a counterweight to other agreements on free trade by other countries, even by China. The Union cannot may.afford allowed, that
suchcontractsaboutfreetradeshouldnotbeassessedattheendscientist.
Istressintheconclusion,thatifitcomestothebenefitsofanEU-MercosuragreementthenseestheirprimarilyineasieraccesstoproductsforindustrialprocessinginMercosurcountries.
-Somemembercountrieshaveboundwiththisagreementthe hopeofincreasedexportsofproductsoftheautomotive industry,ofchemical products,machineryandequipment.ThiscanalsobenefitPoland,whichispartofglobalchainsofvalueandbeingasuppliertoGermany, for example,canbenefitonthisincreasedexportsofGermanytoMercosur countries.AndthereforenotonlyGermancarswillbenefit,butalsoPolishsuppliers-prof.LukaszAmbroziak.
Inpublishingthebenefitstomemberstates,also seesinimprovedaccesstotheservicesmarketandpublicprocurementinMercosurstates.Asalsoindiversificationofsuppliesofrare metals,whichareparticularlyimportantfortheEuropean Unionfromtheviewpointofenergy transformation.He reminds,thatcountriesofSouth Americahavelargeresourcesofelementssuchaslithium,cobalt,vanadiumornickel.
.