EU to address impact on agriculture during South American trade talks

THE European Commission has pledged to address any adverse impact on agriculture during relaunched trade talks with the Mercosur group of countries.

Brussels believes clear economic benefits for both the EU and Mercosur – comprised of Argentina, Brazil, Paraguay and Uruguay – could be obtained from an eventual deal. Earlier negotiations were suspended in 2004.

European farm and agri co-op leaders have warned that a deal could result in cheaper farm products from Brazil and Argentina with a devastating impact on their industries, including the beef sector.

Padraig Walshe, president of COPA, the European farmers’ union, warned that the move would lead to a substantial contraction in the EU agriculture sector, threatening 28 million jobs, and also the EU agri-food sector as a whole.

“Moreover, imports from these countries, which have dubious labour conditions, do not have to comply with the same high food safety, animal welfare and environmental standards that EU farmers do. EU farmers consequently see their competitive position being constantly eroded as the EU pursues a policy of opening up its markets, with little gains for EU citizens or for the rural areas of the EU.”

However, the European Commission president, José Manuel Barroso, said a successful outcome can offer real benefits in jobs and growth for both sides.

“This decision will be accompanied by a number of conditions, ranging from sustainability to intellectual property rights and geographic indications.

“We will address any adverse impact on certain sectors with specific measures, in particular in agriculture,” he said.

European Trade Commissioner Karel De Gucht said the economic benefit to the EU could be an increase of around €4.5 billion of exports per year, with Mercosur expected to benefit from a similar increase of exports to the EU.

IFA president John Bryan has, meanwhile, urged Taoiseach Brian Cowen to intervene with the European Commission to defend the beef sector.