MercoPress. South Atlantic News Agency

EU promises support for farmers in event of trade agreement with Mercosur

EC Trade Commissioner Karel De Gutch has much convincing ahead

The European Commission underlined the significance of negotiations for an association and trade agreement with Mercosur and promised EU farmers “accompanying measures” for those sectors most affected, if a deal with the South American block is finally closes.

“The EC is fully aware of that any agriculture deal is very delicate for these negotiations (with Mercosur) and will take it into account”, said European Trade Commissioner Karel De Gucht during a summons before a full house of the European Parliament in Strasbourg.

A considerable number of European lawmakers clearly expressed fears about a possible agreement with Mercosur, particularly trade in agriculture goods which could leave European farmers exposed to the competitive edge of their South American counterparts.

De Gutch admitted that an opening to Mercosur (Argentina, Brazil, Paraguay and Uruguay) could have an impact on certain European farm products and guaranteed that “accompanying measures will be needed for the most delicate sectors”.

However, it is too soon to start discussing these issues since talks with Mercosur only resumed (last week in Buenos Aires) after having been stalled for six years.

The EU Trade Commissioner also promised that Agriculture Commissioner Dacian Ciolos would also be very much involved in preparing the presentations to be put on the negotiation table.

De Gutch insisted that a hypothetical opening to Mercosur agriculture would not put at risk the stringent food security standards of the EU.

“Needless to say they would have to comply with all the very high standards of food safety we have in Europe. We have no intention of reducing the level of our food standards protection” emphasized the EU official.

Most of the MEP who participated in the farm debate alerted about the risks of a trade agreement with Mercosur, for EU farmers and animal breeders that could lead “to a serious loss of jobs in rural areas”.

They also insisted on the risks of loosing the “high quality standards of European food production” to the competition of cheaper goods from Mercosur.

De Gutch revealed that the first round of EU/Mercosur talks in Buenos Aires were tarnished by alleged protectionist practices against EU food products by Argentina.

However he insisted that a possible deal with Mercosur would help boost EU exports of goods and services and open new public works contracts.

If an agreement can be reached -- and it could take years to negotiate -- it would create the world's largest bilateral free-trade zone, encompassing 750 million people and goods valued at 65 billion Euros a year.

De Gucht said there were good early signs that Mercosur would open its markets to European exporters in the “goods, public procurement and services” sectors, adding that a deal would boost exports of EU-produced wine, cheese, fruit and vegetables.

But the strong farmers and environmentalist lobby was also present.

“EU farmers and the food sector see it as a disaster for them,” said Mairead McGuinness, an Irish member of parliament from the centre-right EPP, the largest bloc in parliament. He added that “there are huge environmental consequences if the deal allows an expansion of beef production in the Mercosur region”.

Mc Guinness also pointed out that the US and Japan “would never contemplate a trade deal with Mercosur that sacrifices its agriculture sector. It is hard to understand why the EU is prepared to do a deal”.

But Karel De Gutch argued that EU trade negotiators are conscious that a deal with Mercosur would give the 27-nation bloc an edge over the United States, whose attempts to tap Latin America's growing consumer market via a free trade deal have so far been frustrated.