The EC’s plan to finalize the Mercosur trade agreement at the G20 summit in Rio de Janeiro in November 2024 is causing deep concern in Europe’s agricultural community. COPA COGECA-affiliated organizations representing farmers and their cooperatives, trade unions and employers in the agricultural sector oppose ratification of the agreement. The milk sector in Poland is also saying no, as Agnieszka Maliszewska, director of the office of the Polish Chamber of Milk, first vice president of COGECA, points out on one of the social networks.
“It seems that some business circles want agriculture to disappear from the map of Europe. Why? Because it’s worth replacing it with cheap and unpredictable product from third countries? There is no way we can agree to that!” – he points out in the entry.
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Accepting this agreement comes at a huge cost to farmers and cooperatives
As Maliszewska points out, trade negotiations between the EU and Mercosur have led to an agreement that “exposes the EU agri-food sector to unequal competition, which could have devastating consequences for farmers’ incomes, wages, working conditions and employment.”
Additionally, as Maliszewska points out, the current draft agreement does not contribute to raising social and environmental standards in Mercosur countries, and even increases the risk of destroying local value chains.
“We need to talk about this agreement in the context of the risks it poses to agriculture in Europe and Poland. Let’s show data and information, impact assessment and risks. It is important that we speak with one voice in this regard, that accepting this content of the agreement entails huge costs for EU farmers and cooperatives,” he points out.
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Ambitious environmental goals on the one hand, and the Mercosur agreement on the other
Maliszewska also recalled that during one of the meetings with Commissioner Janusz Wojciechowski, very clear information and figures were given indicating that EU agriculture would bear the costs of the agreement.
“So let’s show the data – how much the automotive and pharmaceutical industry will gain, and how much agriculture and processing will lose, and what the long-term effects will be,” – states Maliszewska.
“Although the EU pledges to meet ambitious environmental goals, the Mercosur agreement – even with an additional protocol – does not contain sufficient binding safeguards for environmental protection and respect for human and labor rights. The lack of consistency in this regard threatens the long-term goals of the Union, which is betting on a transformation towards more sustainable food systems,” Maliszewska explained.
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The Mercosur region already plays a key role in supplying the EU market
The expert also stresses that the Mercosur region already plays a key role in supplying the EU market with many agricultural raw materials. Further opening of the EU market to agricultural products from Mercosur, especially for sensitive products such as beef, poultry and sugar, would pose a serious threat to the competitiveness of the EU agri-food sector.
“At the same time, the economic crises in some Mercosur countries indicate that the possibility of increasing EU exports of products to the region is limited. Without strong consumer demand, trade will not be a growth engine in its own right. The trade outlook for EU agriculture is deteriorating: from the uncertainty of trade conflicts with China, to the negative consequences of Russian aggression against Ukraine, to the Mercosur deal being pushed through. What’s next? Let’s not go down this road, let’s start thinking about the long-term effects on our sector,” Maliszewska points out.
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