EU signs Mercosur deal
At the end of June, the European Union and Mercosur group of countries reached a political agreement on the EU-Mercosur deal. Despite the fact that both sides are emphasizing the advantages of the agreement, several countries and organizations in the European bloc have a different position.
Ireland, France, Poland and Belgium have expressed their concerns over the trade agreement that favors the South American beef producers from Brazil, Argentina, Paraguay and Uruguay and there are also worries expressed on the food standards and environmental issues.
"We’ve conceded some beef because we’ve had to make some concessions ... to get the €6 billion in savings in the industrial side over the line. But we’ve gained in the dairy sector which nobody has mentioned", declared commissioner Phil Hogan in a radio show.
The European Commission insisted that the deal would protect food and environmental standards and estimates that this agreement will wipe out about €4 billion in annual customs duties on EU exports.
"EU food safety standards will remain unchanged and all imports will have to comply with the EU's rigorous standards, as is the case today. The agreed food safety, and animal and plant health provisions will reinforce cooperation with the authorities of the partner countries and speed up the flow of information about any potential risks through a more direct and efficient information and notification system. In this way, the agreement will increase our efficiency in ensuring the safety of the products traded between the EU and Mercosur countries," mentioned The Commission in a press release.
From Mr Hogan's perspective, the EU was on defensive while negotiating the deal on the agricultural sector but advantages will soon appear in several other markets such as Japan and Mexico. Still, companies from Ireland and Poland are worried about the quotas granted for South American beef and the fact that Brazilian poultry competitors are using substances that are forbidden in the EU market.
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