EP approves safeguards to protect European agriculture in Mercosur agreement

Under the new regulation, approved by 483 votes in favour, 102 against and 67 abstentions and informally agreed with the Council, the tariff preferences provided for in the EU-Mercosur trade agreement for imports of agricultural products from Argentina, Brazil, Paraguay and Uruguay may be temporarily suspended if the increase in imports causes serious damage to European producers.

The new regulation stipulates that the European Commission must launch an investigation into the need for protective measures if imports of sensitive products, such as poultry, beef, eggs, citrus fruits and sugar, increase by 5% above the three-year average (compared to the 10% annual increase initially proposed by the Commission) and, at the same time, import prices are 5% below the price in the EU.

Member States, natural or legal persons representing the sector, or an association acting on behalf of the industry may request an investigation in the event of a threat of serious damage to the sector concerned.

In addition, the Commission must submit a report to Parliament at least every six months assessing the impact of imports of sensitive products.

Statement by the rapporteur

Gabriel Mato (EPP, Spain), rapporteur for Mercosur, said: “The safeguards will ensure that the EU-Mercosur agreement is accompanied by a balanced and credible protection mechanism for our agricultural sector. They strengthen market surveillance, introduce clear and objective criteria for detecting disturbances and allow for faster action in the case of sensitive products when there are indications of harm. They will provide stability and predictability for farmers, while preserving the overall balance of the agreement.”

Next steps

Following formal approval by the Council, the regulation will be published in the Official Journal of the EU. The safeguards will apply once the interim trade agreement with Mercosur enters into force.

Background

The bilateral safeguard clauses will be incorporated into the EU-Mercosur Association Agreement and the interim trade agreement. The Parliament requested the opinion of the Court of Justice of the EU on the compatibility of both agreements with the EU treaties, so it cannot yet ratify the agreements. However, the European Commission could choose to apply them provisionally once at least one of the Mercosur countries has completed its ratification.

More information: European Parliament