Negotiations for the agreement between Mercosur and the European Union face strong resistance from the European agricultural sector, according to Sueme Mori, director of International Relations at the Brazilian Confederation of Agriculture and Livestock (CNA). In an interview with CNN MoneyMori highlighted that pressure from the agricultural lobby in Europe is intense, especially after protests that took place at the beginning of last year.
According to the director, the safeguards recently approved by the European Parliament are unilateral measures and are not part of the text of the agreement that will possibly be signed on December 20th. “This document is an internal regulation, that is, it is a unilateral measure by the European Union in relation to the safeguard measure”, explained Mori, highlighting that the text of the agreement was signed in December last year.
The new European safeguards include rules for trade investigations that, in the case of meat, can be completed in just two to four months, as well as restrictions on products that increase their exports to the European Union above 8% in volume for three consecutive years.
“This text is not part of the agreement, of the texts that were negotiated. This is a unilateral measure by the European Union, that is important to say”, he emphasized.
Benefits of the agreement for Brazilian agribusiness
Despite the controversies, Mori highlighted that the agreement would bring important benefits to Brazilian agribusiness, mainly with the reduction of import tariffs. “Brazil and Mercosur as a whole have a very limited network of trade agreements. I say that despite the limited network of agreements, Brazil is the largest net food exporter in the world,” he stated.
The director highlighted that Brazilian agribusiness is highly competitive and globalized, and that commercial opening would be positive for the sector in general, even recognizing that there are sensitive sectors.
“From the point of view of the supply basket, we are talking about 90% of what we export from bilateral trade”, he explained, adding that “it could be better, the quotas could be higher, but that is what was possible and that is what was negotiated over so many years”.
Regarding a possible postponement of the signing of the agreement, Mori said that it is necessary to understand the reasons. “Will it be delayed to reopen the text and try to put things in there?”, he asked.
She mentioned that some European countries have made specific demands, such as Italy, which asks for a compensation fund for farmers, and France, which defends a “mirror clause” to impose the same production rules on Mercosur countries.
