Negotiated Trade Agreement Between the European Union and Mercosur Countries: Controversies and Positions.
The negotiated trade agreement between the European Union (EU) and Mercosur countries (Argentina, Brazil, Paraguay, Uruguay) has sparked controversy in Poland and on the EU forum. While the European Commission (EC) sees immense economic and strategic potential in the agreement, Poland fears negative repercussions for its domestic agricultural sector. Here are the key details and positions of both sides.
European Commission: A Partnership of Strategic Importance
The EC emphasizes that the Mercosur countries are natural partners for the EU, connected by economic and cultural ties. The European Union is a key investor and exporter in this region – in 2023, the value of goods exported from the EU to Mercosur amounted to €55.7 billion, and investments in 2022 reached €384.7 billion. The EC highlights the benefits of the agreement:
- Elimination of Tariffs on 91% of products exported from the EU, significantly increasing the competitiveness of EU enterprises in the Mercosur market.
- Removal of Non-Tariff Barriers, such as cumbersome import procedures and restrictive regulations.
- Protection of European Geographical Indications, including “Polish Vodka,” to eliminate the sale of imitation European products.
- Safeguard Clause to protect EU farmers in the event of excessive import surges.
- Strengthened Climate Action, including the inclusion of the Paris Agreement as a core element of the deal.
The EC argues that the agreement has geopolitical and economic significance, especially in the context of geostrategic competition, reducing dependence on other trade partners, and combating climate change.
Reasons for Poland’s Opposition
- Excessive Tariff Reductions and Quotas
The Polish Ministry of Agriculture indicates that the agreement provides overly ambitious tariff preferences in certain sectors. There is a risk that Polish agri-food products may be displaced by cheaper goods from Mercosur countries, negatively impacting the position of Polish farmers in the EU market. - Lack of Uniform Production Standards
Imported agricultural products from Mercosur countries do not have to meet the same requirements as those produced in the EU, such as environmental protection, animal welfare, or labor standards. Poland proposed that tariff reductions be contingent upon adherence to EU rules, but in the agreement, regulations on animal welfare were only required for eggs. - Ineffectiveness of the Safeguard Clause
The provisions concerning the safeguard clause, which allows for the temporary reinstatement of tariffs in the event of excessive imports, are deemed inadequate by the Ministry, as they may not effectively protect European producers in a crisis situation.
Divergent Views on Agricultural Benefits
The EC assures that the agreement will open new export opportunities for European farmers, particularly in high-quality product sectors. The reduction of tariffs is expected to facilitate the sale of products such as wine, dairy, and meat on the growing Mercosur market, where the middle class increasingly appreciates premium products from the EU.
However, Poland is concerned that increased imports of cheap agricultural products, such as beef and poultry, may damage European producers, especially those from smaller farms. The Ministry argues that even limited tariff quotas could exert pressure on prices and the competitiveness of EU farmers.
What’s Next for the EU-Mercosur Agreement?
It remains uncertain whether the agreement will come into effect. It requires a formal request from the European Commission to the European Parliament and the EU Council for approval. The decision on acceptance of the agreement could follow one of two scenarios:
1. Requirement for Unanimity
If the agreement is classified as an association agreement, the EU Council’s decision requires unanimity. This means that the opposition of even one member state, such as Poland, could block its implementation. Additionally, the approval of the European Parliament and ratification by all member states would also be necessary.
2. Qualified Majority
An alternative is to separate the trade part of the agreement as a distinct document, allowing it to be approved by qualified majority in the EU Council. In this case, the opposition from Poland and France would need support from other member states to create a blocking minority.
Polish Government Says “No”
During the Council of Ministers meeting on November 26, the Polish government unequivocally opposed the agreement. Poland intends to take all possible actions to protect the interests of domestic farmers. The Ministry does not rule out that the European Commission might try to persuade member states to accept the agreement by offering additional funds or other incentives for the agricultural sector.
Source: https://managerplus.pl/polska-stanowczo-sprzeciwia-sie-umowie-ue-mercosur-70349
