The management of – a reference Algarve company that sells a series of products and services covering agriculture, green spaces, animal nutrition and animal and domestic hygiene – considers that the trade agreement between the European Union and Mercosur could increase competition for Algarve oranges, by facilitating the entry of South American citrus fruits with lower production costs and, consequently, more competitive prices.
In response to Postal do Algarve, the company points out a lack of true reciprocity in the rules applied to imports, especially in terms of phytosanitary, environmental and labor standards, and argues that, if the agreement is to move forward, concrete measures will be necessary such as support for producers, reinforcement of waste and quality controls, and investment in certification, water efficiency, innovation and new varieties to reduce the impact on the sector.
Q – What impact do you anticipate from the EU–Mercosur agreement on the competitiveness of Algarve oranges?
R – In the particular case of oranges, Brazil is the world’s largest producer and production costs are substantially lower than in Portugal. The removal of tariffs will make oranges from South America even cheaper, putting pressure on prices, reducing margins and competitive space for local production.
Q – Do you consider that the agreement guarantees reciprocity for imported citrus fruits?
R – In this case, the competition between these products is unfair. In Europe, the rigor of phytosanitary standards is much greater than in South America. Many of the plant protection products used in this part of the world have long been banned in Europe, due to environmental restrictions. Labor is much cheaper and with few labor requirements, as well as environmental requirements, are much lower. In this way, in South America it is possible to produce much cheaper, as there are much less production costs, with the added bonus of being able to receive citrus fruits with residues of plant protection products.
Q – What concrete measures do you advocate?
R – What we really defend is that the agreement should not exist. However, with this agreement in force, measures such as monetary and other support for the producer, reinforcement of the control of all agricultural products arriving in Europe, particularly with regard to MRLs, and quality. Promotions in new markets, certifications, investment, not only in water efficiency, but also in production techniques and new varieties, would be some measures to reduce this unfair competition.
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