The European Union and South America’s Mercosur countries, Argentina, Brazil, Paraguay, and Uruguay, have agreed a historic bilateral trade deal, following more than two decades of discussions between the two blocs.
Announcing the agreed deal, European Commission president Ursula von der Leyen said that the partnership sends ‘a clear and powerful message to the world’, adding that the deal is ‘not just an economic opportunity, it is a political necessity’.
This agreement is a win for Europe.
— Ursula von der Leyen (@vonderleyen) December 6, 2024
30.000 European small companies are already exporting to Mercosur.
Many more will follow.
EU-Mercosur reflects our values and commitment to climate action.
And our 🇪🇺 health and food standards remain untouchable ↓ https://t.co/Swp66exJrY
A host of industry representative groups from across Europe have responded to the trade deal, several of which can be found below.
Copa-Cogeca
Copa-Cogeca, which represents the farming community at European level, said that the EU-Mercosur deal ‘will have profound consequences for family farming across Europe, affecting also 450 million of EU consumers,’ expressing its ‘firm opposition’ to the agreement.
‘While we recognise the EU’s need to deepen trade relations in the current geopolitical context, this must not come at any cost. The EU agricultural sector remains particularly vulnerable to the concessions made in the unbalanced agricultural chapter of this agreement. Sensitive sectors such as beef, poultry, sugar, ethanol, and rice face heightened risks of market saturation and income loss due to the influx of low-cost products from Mercosur countries.
‘This agreement will exacerbate the economic strain on many farms already grappling with high input prices and challenging climatic conditions.
‘The evidence is overwhelming: Mercosur countries do not meet the production standards required of EU agriculture, whether in terms of plant protection products, animal welfare, or sustainability practices. Mercosur nations also operate under lower labour and safety standards, enabling them to produce at lower costs, which makes fair competition impossible for EU producers. There is a lack of coherence in the European Commission’s actions.’
European Committee of Wine Companies (CEEV)
The CEEV, which represents the wine industry at a European level said that the deal will play a ‘critical role’ in ensuring the ‘long-term economic sustainability of the European wine sector’ by unlocking new trade opportunities.
“After 25 years of negotiations, the time has come to finalize and swiftly ratify this agreement,” commented Mauricio González-Gordon, president of CEEV.
“The initial provisions on wine market access and GI protection were already promising, but the latest revisions addressing environmental concerns bring additional benefits to both parties. In these challenging times, the agreement represents a vital opportunity for the European wine companies to access new markets and attract more wine consumers.”
Committee of European Sugar Users (CIUS)
The Committee of European Sugar Users (CIUS) said that it ‘welcomes’ the EU-Mercosur trade deal, describing it as a ‘significant step toward strengthening trade relations and securing a stable, competitive, and sustainable business environment.
“The EU-Mercosur FTA has the potential to enhance access to high-quality, sustainable sugar imports, crucial for ensuring the competitiveness of the European food and drink sector,” commented Mayssa Vande Vyvre, director general. “By diversifying supply sources, this agreement addresses key challenges faced by sugar users, including the limited availability of sugar within the EU market.
“The EU nevertheless remains highly protectionist, and the new sugar market access provided to Mercosur is very small, covering only 1% of the EU’s needs.
“We would like to emphasizes the importance of implementing the agreement swiftly while ensuring a balanced outcome that supports both trade and sustainability. We urge EU policymakers to recognize the strategic role of access to sugar imports in supporting resilient value chains and promoting economic growth across the sector.”
European Dairy Association (EDA)
The European Dairy Association (EDA) said that the deal underscores the EU’s commitment to ‘fostering robust international trade and mutual economic growth’.
“In today’s troubled international trade arena, this is a real breakthrough that underscores the EU’s trade ambitions and the remarkable performance of its negotiation teams,” commented Alexander Anton, EDA secretary general.
According to the EDA, the deal will enable both the EU and Mercosur countries to ‘work on the final implementation and secure unhindered access for our European dairy exports, including the reduction and abolishment of tariffs as well as nontariff barriers.
‘The adopted legal safeguards to protect over 350 high-quality European food and drink products from imitation will also strengthen the well-deserved high-quality reputation of all European dairy products.’
SpiritsEUROPE
SpiritsEUROPE, which represents the spirits sector, added that it welcomed the agreement and called for ‘a swift conclusion and entry into force of the agreement to unlock its full potential and boost economic growth’.
According to spiritsEUROPE Director General Ulrich Adam, “After 25 years of negotiations, a successful political agreement on the EU-Mercosur agreement has been reached. The deal is a vital step forward to unlock growth opportunities and strengthen ties between two like-minded regions.
“Once in force, the agreement will secure a first-mover advantage and allow both regions to reap its full benefits. For the EU spirits sector, it promises significant benefits, including tariff elimination, trade facilitation, increased regulatory cooperation and strong protection of Geographical Indications.”
Eucolait
Eucolait, which represents European wholesalers, exporters and importers of dairy products, said that it ‘applauds the breakthrough’ in the EU-Mercosur trade negotiations, adding that it represents ‘a boost for the dairy sector and a notable success for Europe, especially intoday’s complex geopolitical environment.
‘By concluding a process that has spanned 25 years, both the EU and Mercosur send a powerful message about the importance of upholding open, rules-based trade and resisting protectionism. Furthermore, the agreement is expected to provide a strong foundation for enhancing the sustainability of global food systems.’
Developing story – stay tuned for further updates.
