EU ministers caution on trading with Mercosur members

EU agriculture ministers agreed last week that trade offers should not be made to the Mercosur countries of South America until EU member states have had sufficient time to fully evaluate impact assessments being prepared by the European Commission, and after full debate by EU agriculture ministers.

Ireland’s request made by Agriculture Minister Simon Coveney that the Council take note of the state of EU trade negotiations with Mercosur was supported by a large number of member states who raised the risks of a further opening of EU markets to agricultural products from Mercosur, which could hit several agricultural sectors, including beef. At the Agriculture Council meeting Commissioner Dacian Ciolos agreed that the impact assessment on these negotiations could be discussed soon in a Council expert working group, and that member states would be kept informed of any offer made to Mercosur on agricultural issues.

In May, 2010, the European Commission relaunched free trade agreement negotiations with Mercosur (Argentina, Brazil, Paraguay and Uruguay, with Venezuela in the process of joining), which had been suspended without agreement in October 2004, after nine years of talks.

A successful EU-Mercosur agreement would have major implications in trade of industrial goods, services and agriculture. Since May 2010, four negotiating rounds have taken place.

IFA president John Bryan has said a Mercosur trade deal will inflict losses on European agriculture ranging from €17bn to €36bn, depending on the scale of the concessions to South America, and possible gains to other sectors are not at all evident.

He said the EU claims to be concerned about sustainability and climate change, but is prepared to accept a major increase in imports from South America where the carbon footprint is four times higher.