MercoPress. South Atlantic News Agency

EU countries divided over extent of agriculture talks with Mercosur

French Agriculture Minister Bruno Le Maire, the leading voice against further concessions to Mercosur

While in Madrid the re-launching of trade European Union/Mercosur trade talks was announced, in Brussels, a meeting of the Agriculture Council showed how sensitive the issue is and how divided EU members are on market access for highly competitive produce from the South American block.

At the start of the meeting of the Council, French Agriculture Minister Bruno Le Maire reiterated his country's opposition to a deal, which was outlined last week in a declaration signed by several other EU states.

“France is opposed to the re-launch of the negotiations between the EU and Mercosur,” Le Maire told journalists, adding that this view was shared by French President Nicolas Sarkozy.

“I don't see why agriculture always has to be the bargaining chip in Europe's trade negotiations ... especially when a certain number of South American countries, notably Argentina, are putting new protectionist tariffs on food imports,” he said.

Le Maire warned ministers that removing EU import tariffs on agricultural products from Mercosur countries would lead to a 70% jump in imports of beef, and 25% rise in poultry imports.

During Monday's meeting several other EU countries came out against the negotiations in addition to the ten that signed last week's joint declaration, bringing the total to “about 15”, one EU source said.

In his first EU council meeting, Italy's new agriculture minister Giancarlo Galan said the negotiations presented a great risk to European farmers.

“In the context of the reform of the common agricultural policy, the EU can't reduce import tariffs at the same time as reducing farm support” Galan said.

Ireland expressed serious concerns over the potential impact on its beef sector, and high quality beef production in particular, which would face serious competition from Argentina and Brazil.

Beef accounts for over 30% of Ireland's total agricultural output, according to figures from the Irish Farming Association.

Germany was described by sources in the meeting as “more against than for” the reopening of talks, but Britain, Sweden, the Czech Republic, Denmark and the Netherlands are willing and ready to negotiate, they added.

There was a consensus in the meeting that the European Commission should assess the impact of any deal between the EU and Mercosur before it is signed, and that it should not undermine progress in the stalled Doha round of global trade talks.

“It's a sensitive issue for agriculture,” said EU farm Commissioner Dacian Ciolos, but it's too early to say what the impact on EU farmers will be, he added.
“It's only a re-launch of negotiations, and as you know these talks take lots of time. We have to see what Mercosur position is and what they put on the table”.

Commission President Jose Manuel Barroso has promised compensation measures for those sectors most affected.

Meantime Spanish farmers made public a letter addressed to the Environment and Rural and Marine Affairs minister Elena Espinosa warning that a free trade agreement with Mercosur would destroy millions of jobs in Europe and leave thousands of farmers out of business.

Many of the job losses “would be in Spain” add the farmers who quote data from European farmers’ organizations estimating initial losses of 5 billion Euros, particularly in the meat production industries such as beef, pork and chicken.

“The massive introduction of different types of meat would cause a significant loss to Spanish farmers and an overall weakening of the production and marketing chain”, point outs the letter underlining that Brazil “is a global power in agriculture with a clear export promotion objective”.

Two of Europe’s most powerful farmers unions Copa and Cogeca also backed EU state members that have already spoken out against talks with Mercosur. They say they could lead to sharp rises in beef, poultry, wheat, and other imports.

Copa president Padraig Walshe said the move would endanger the EU high quality and safety standards. “EU producers have to comply with stringent requirements, which make it much more costly to produce, while Mercosur countries do not have to respect the same standards. They use growth promoters in their meat production even though they are banned in the EU”.

“They have poor antibiotic controls. Their labor conditions are unacceptable by EU standards. They also produce with the benefit of GM technology, which is denied European farmers because we are told EU consumers do not want it. Other trade partners, such as the US and Japan, do not allow meat imports from Mercosur countries.”

Cogeca president Paolo Bruni said it would also cause more intensive farming methods and de-forestation in Mercosur countries.