This week, the National Congress intends to discuss a package of reactions against the French boycott campaign against Brazilian agriculture and other Mercosur countries. One of the projects that could move forward creates provisions on non-acceptance of international agreements that impose discriminatory restrictions on Brazilian products. Meanwhile, behind the scenes at Palácio do Planalto, the crisis frustrated diplomacy’s expectations to close the trade agreement between Mercosur and the European Union later this year.
The president of the Chamber, Arthur Lira (PP-AL), meets this Tuesday (26) with the Parliamentary Agricultural Front (FPA) to discuss the vote on Bill 1406/24, authored by deputy Tião Medeiros ( PP-PR), which creates a National Program for Monitoring International Isonomy of Policies. Lira signaled that she intends to put the proposal to a vote this week.
“We are very uncomfortable with European protectionism, especially between France and Brazil. And this week, the National Congress should have on its agenda the law of economic reciprocity between countries”, stated Lira. “Brazil, the National Congress, businesspeople and the population must give a clear response so that this exaggerated protectionism, especially from France, does not become a reason for unfair protectionism against the interests of those who protect [o meio ambiente] under the strictest law with our Brazilian forestry code”, he continued.
In addition to discussing the proposal, Senator Tereza Cristina (PP-MS) filed a request to summon the French ambassador to Brazil, Emmanuel Lenain, to demand explanations from the Senate Foreign Relations Committee. “There is no real reason, other than French protectionism for its products, which receive subsidies, for these measures, which deserve more than indignation, they deserve a reciprocal response”, defended the senator.
As for Senator Nelsinho Trad (PSD-MT), president of the Brazilian Representation in the Mercosur Parliament, France’s position puts trust in the mutual relationship with the European bloc at risk. “These actions harm the negotiations of the free trade agreement between Mercosur and the European Union, they contradict the spirit of cooperation and the bases of fair trade that have guided the dialogue between the blocs,” said the parliamentarian.
In addition to the reaction of the National Congress, Carrefour’s decision is also being monitored by Palácio do Planalto. This Monday (25), Fávaro defended the decision of Brazilian producers to suspend sales to the Carrefour chain in Brazil.
“If for the French people Carrefour does not buy Brazilian meat, Carrefour also does not buy Brazilian meat to put on its shelves here in Brazil,” Fávaro told Globo News. The Ministry of Agriculture had already stated that “it will not accept vain attempts to tarnish or undermine the recognized quality and safety of Brazilian products and Brazilian environmental commitments”.
Carrefour CEO apologizes “if it caused confusion”
The crisis began last week, after the global president of the Carrefour supermarket group, Alexandre Bompard, announced that the chain, in France, would no longer buy meat from Mercosur member countries – Brazil, Argentina, Paraguay, Uruguay, Bolivia , Chile and Colombia.
Bompard said the decision to boycott was taken after hearing the “dismay and anger” of French farmers, who have been protesting against the free trade agreement between the South American bloc and the European Union. The treaty has been negotiated for almost 30 years and President Luiz Inácio Lula da Silva (PT) expected it to come to fruition in 2024.
Brazilian meatpackers reacted to the Frenchman’s statement and initiated, over the weekend, an embargo on the supply of meat to Carrefour in Brazil. The movement was such that the supermarket chain in Brazil admitted that the suspension of meat supply would impact its customers, although it denied shortages.
This Tuesday morning (26), after the repercussions, Bompard wrote a letter of clarification to Minister Carlos Fávaro (Agriculture), saying that, “if the communication from Carrefour França generated confusion and could have been interpreted as questioning our partnership with Brazilian agriculture and as a criticism of it, we apologize.” Despite this, Bompard’s note calling for a boycott of Mercosur products remained on the CEO’s profile on X.
Crisis with France hampers trade agreement with the EU
Inside the Palácio do Planalto, the boycott of Carrefour in France was seen as yet another form of protectionism by the European country against the conclusion of the trade agreement between Mercosur and the European Union.
The trade agreement between the two blocs is one of Lula’s priorities, but he has been facing resistance, mainly from the French. During the G20 summit in Rio de Janeiro, the president of France, Emmanuel Macron, reinforced that the proposal faces difficulties in getting off the ground.
“We really don’t want to import agricultural products that don’t respect the rules we impose on ourselves,” said the Frenchman, referring to environmental and health standards that French farmers demand from Mercosur as a way of preventing the agreement from coming into force.
Lula’s ally, Macron said he proposed to the Brazilian president to undertake “new work to try to develop a joint investment framework that protects” French and European agriculture. In addition to the President of France, the Polish government publicly committed, last weekend, not to sign the treaty, as a way of putting an end to the protests by Polish producers.
“We maintain our unquestionable opposition to the treaty with Mercosur, as farmers demand. This will be formalized not only as a position of the Ministry of Agriculture, but also of the Polish government and parliament,” said Polish Agriculture Minister Czeslaw Siekierski.
Crisis frustrates expectations of Lula’s diplomacy
The boycott episode provoked by Carrefour and the signal from the Polish government frustrated the government’s expectations regarding the closing of the trade agreement between the two blocs later this year. Lula’s allies do not rule out coordinated action by France to bury the treaty between Mercosur and the European bloc.
Members of Brazilian diplomacy are now working to pressure other European countries for a new attempt at negotiations. The assessment among government officials, however, is that it will be necessary to find a new line of negotiation.
“The position of the Ministry of Agriculture is not to believe in an orchestrated movement on the part of French companies aimed at hindering the formalization of the Mercosur – European Union Agreement, discussed at the G20 summit meeting”, the ministry said in a note.
The European Commission, with the support of several important countries in the bloc, such as Germany and Spain, are in favor of closing the free trade agreement with Mercosur before the end of this year. Negotiations between the two blocs have been going on since 1999. In 2019, during the government of former president Jair Bolsonaro (PL), a general agreement was finalized, but since then the treaty has undergone revisions and has not been ratified by any country.
If the European Commission goes ahead with the pact without French consensus, Paris would need the support of other countries to block approval. In this scenario, it would be necessary to form a so-called “blocking minority” with at least four of the 27 EU countries in case supporters of the decision do not reach 65% of the bloc’s population.
In addition to France and Poland, Italy has also signaled resistance to signing the trade agreement. If the treaty is signed, the European Union must eliminate tariffs on 92% of imports from the South American bloc within 10 years. Mercosur, in turn, is expected to end 72% of tariffs on products purchased from the European bloc in the same period. In 15 years, this percentage will reach 91%.
For the agricultural sector, 81.8% of what the European Union imports from Mercosur will have zero tariffs in 10 years. In the same period, 67.4% of what the South American bloc purchases will be tariff-free.
