Trade

Mercosur, green light from the majority of EU countries to the agreement. Here are those who voted against

The threshold for triggering investigations of sensitive agricultural products - in case of possible market disturbances - was lowered from 8% to 5%

Aggiornato il 9 gennaio alle 12.50

Cimmino (Confindustria): Mercosur occasione di ampliare i mercati

3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

France, Hungary, Ireland, Poland and Austria voted against the go-ahead for the free trade agreement between the EU and Mercosur (the South American bloc comprising Brazil, Argentina, Uruguay and Paraguay), while Belgium abstained and Italy voted in favour. Despite their opposition, the opposition front did not therefore achieve the necessary weight to prevent adoption by qualified majority, i.e. the support of at least 15 member states representing at least 65% of the EU population, which was achieved thanks to Italy's yes during a meeting at the level of the EU countries' ambassadors in Brussels. The agreement will be signed on 17 January in Paraguay. This was announced on X by the Argentinian Foreign Minister, Pablo Quirno.

In the same session, the safeguards negotiated in December, which still have to be adopted by the European Parliament in plenary session, were formally approved to strengthen the protection of the European agri-food sector against potentially serious distortions caused by the Mercosur market opening in sectors such as poultry, beef, eggs, citrus fruits and sugar.

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The new framework sets specific thresholds so that the European Commission can initiate investigations, and if necessary activate specific measures, if there is a strong impact on sensitive European agricultural products. In December, the Council and the European Parliament had agreed to set these thresholds at 8 per cent, but they were reduced to 5 per cent, as initially supported by the Eurochamber, to meet Rome's demands. Now Brussels will intervene when imports of sensitive products increase on average by 5% and prices fall by the same percentage over a three-year period (against the 10% initially proposed by the Commission).

The European Commission, which concluded the negotiations a year ago, and countries such as Germany and Spain argue that this agreement is a key part of the EU's efforts to unlock new markets, compensate for trade losses due to US tariffs, and reduce dependence on China by ensuring access to essential minerals.

Opponents, led by France, the EU's largest agricultural producer, claim instead that the agreement will increase imports of cheap food, hurting domestic farmers. Farmers have launched protests across the EU, blocking French roads yesterday, while in Milan tractors with tricolour flags arrived today by the dozens in Piazza Duca d'Aosta, in front of the seat of the Lombard regional council, also unloading bales of hay and honking.

Today's vote of the EU ambassadors, however, paves the way for Commission President Ursula von der Leyen to sign the agreement with the Mercosur partners, which will have to be approved by the European Parliament before it can enter into force.

Parigi, protesta dei trattori dalla Torre Eiffel all'Arco di Trionfo

France remains on the warpath

The free trade agreement would be the EU's largest in terms of tariff reductions, eliminating EUR 4 billion (USD 4.66 billion) in tariffs on its exports. Mercosur countries have high tariffs, such as 35% on auto parts, 28% on dairy products, and 27% on wines. The EU and Mercosur hope to fairly expand trade in goods worth EUR 111 billion. EU exports are dominated by machinery, chemicals and transport equipment, while Mercosur exports focus on agricultural products, minerals, pulp and paper.

To convince sceptics of the agreement, the European Commission introduced safeguard measures that can suspend imports of sensitive agricultural products. It has strengthened import controls, in particular with regard to pesticide residues, set up a crisis fund, accelerated support for farmers, and pledged to reduce import tariffs on fertilisers.

The concessions were not enough to convince Poland or France, but theItaly went from 'no' in December to 'yes' today.

French Agriculture Minister Annie Genevard said the battle is not over and pledged to fight for a rejection by the EU Assembly, where the vote could be tight. European environmental groups also oppose the deal, with Friends of Earth calling it a 'climate-destroying' agreement.

German Social Democrat Bernd Lange, chairman of the parliament's trade committee, expressed confidence that the agreement will be approved, with a final vote most likely in April or May.

Von der Leyen, EU-Mercosur is a historic agreement, we Europeans are reliable

"Europe's perseverance and commitment to deliver on our priorities and keep our commitments is evident. At a time when trade and dependencies are being instrumentalised and the dangerous and transactional nature of the reality in which we live is becoming more and more apparent, this historic trade agreement is further proof that Europe is charting its own course and is a reliable partner". Says Ursula von der Leyen in light of the OK of the 27 to the EU-Mercosur agreement. "I am looking forward to travelling to Paraguay so that we can start this new era together," the Commission President added.

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