Background on Key Players and Relevance
The European Union (EU) is working towards finalizing a trade agreement with Mercosur, a South American bloc comprising Argentina, Brazil, Paraguay, and Uruguay. This development comes as the EU Commission President, Ursula von der Leyen, prepares to visit Latin America. However, before embarking on this trip, von der Leyen must secure approval from EU member states through a qualified majority vote.
Progress in Negotiations and Key Steps
On Wednesday, the EU Commission reaffirmed its expectation to sign the free trade agreement with Mercosur “soon,” citing progress in negotiations between EU and Mercosur countries. The original target date of January 12 for approving this trade deal has not been confirmed by the EU spokesperson, Paula Pinho. Nevertheless, the Commission insists it is on the “right track” due to discussions within the EU-27, diligent work, and advancements.
Pre-Visit Steps
Before traveling to Latin America, von der Leyen must first secure approval from EU member states via a qualified majority vote. This vote could take place on Friday during a meeting among EU representatives, according to diplomatic sources. Prior to the meeting, EU agriculture ministers were summoned for an extraordinary session in Brussels to discuss the Mercosur agreement and the future of the Common Agricultural Policy, both of which are of great concern to farmers.
Italy’s Supportive Stance
The agreement appears closer now, thanks to Italy’s favorable position, which is crucial in this matter. Italian Foreign Minister Antonio Tajani praised the EU’s measures in support of farmers and the “enormous benefits” of the Mercosur deal on Wednesday. He emphasized, “We have always supported the conclusion of this agreement, insisting on addressing the legitimate concerns of the agricultural sector.”
French Measures to Address Farmer Concerns
In response to farmer discontent regarding the EU-Mercosur trade deal, France announced a temporary suspension of certain agricultural product imports treated with banned substances in the EU, primarily from South America. This move aims to appease French farmers who have been vocal about their concerns.
- Product Suspension: Starting Thursday, the one-year suspension will affect products like avocados, mangoes, guavas, citrus fruits, and potatoes if they contain five prohibited fungicides and herbicides in Europe, namely mancozeb, methyl thiophosphate, carbendazole, glufosinate, and benomyl.
- Scope of Suspension: Although the suspension primarily impacts South America, it is not a decree against any specific region but rather against any country using these substances on fruits and vegetables.
- EU Review Process: The EU has ten days to analyze the suspension, which can be implemented while under review.
French President Emmanuel Macron faces pressure from both the agricultural sector and political opposition. All political parties are against the Mercosur agreement, and Macron risks “government censure” if he votes in favor, according to conservative leader Bruno Retailleau.
EU’s Proposed Support for Farmers
To ease farmer concerns, von der Leyen proposed additional funds of approximately €45 billion (around $53 billion) for European farmers within the upcoming Common Agricultural Policy (CAP) framework from 2028 to 2034.
Farmer Concerns and Trade Impact
European farmers worry about the influx of competitive, low-cost Mercosur products like beef, rice, honey, and soybeans due to their production standards. In exchange for exporting European vehicles and machinery to Mercosur, they fear an overwhelming arrival of these products in Europe.
