Will Europe be flooded with cheap food from South America? Another group of companies is afraid of the EU’s agreement with Mercosur

Luc Williams

Meat production in Mercosur is up to 40% cheaper.

“Meat production in the Mercosur countries (Brazil, Argentina, Paraguay and Uruguay) is 20 to 40 percent cheaper than in the EU,” the newspaper recalled, citing sector data. Farmers in European countrieswho have to take into account EU environmental requirements, are afraid of unfair competition from South American countries.

Pig breeding and slaughter in Europe accounts for 20 to 25 percent. more expensive than in the Mercosur countries – said a representative of Anprogapor, the Spanish association of pig producers. In the case of beef, production costs in the EU were on average 40% higher in 2018-2020. than in Mercosur, and in the case of Brazil itself by as much as 60%. – says the non-governmental organization Agri Benchmark.

As “ABC” reminds, animal breeders played a leading role in the wave of protests against the agreement in early December, when the European Commission announced the finalization of negotiations that had been going on for 25 years.

The daily reminds that Brazil is the fourth largest pork producer in the world, behind China, the EU and the USA, and domestic production is constantly growing.

“This should worry Spain, which is the leading European pork exporter and its main market are EU countries. According to the Ministry of Agriculture, in 2023, Spanish exports in the EU amounted to 1.5 million tons, while 1.27 million tons went to countries third parties,” wrote “ABC”.

The EC reassures: Beef, pork and poultry will be subject to quotas and customs tariffs

The EC announces that beef, pork and poultry will be classified as “sensitive” products, therefore they will be subject to quotas and customs tariffs.

According to Commission data quoted by the Spanish daily, European pork and beef production is expected to decline by 2035. The reason is said to be “low profitability” and “the prospect of a more stringent regulatory framework regarding sustainable development issues.”

EU agreement with Mercosur

At the beginning of December, the head of the European Commission Ursula von der Leyen announced the completion of negotiations on a free trade agreement with the bloc of South American countries – Mercosur. The EC assured that it responded to the concerns of European farmers in the new text of the agreement.

Strong opposition from France, Poland and Italy

Opposition to the agreement in its current form was expressed, among others, by: France, Poland and Italy. For the agreement, or at least its commercial part, to enter into force, it must receive the support of a qualified majority, i.e. 15 out of 27 member states, representing at least 65 percent. the population of the EU and the European Parliament.

From Madrid Marcin Furdyna (PAP)

About LUC WILLIAMS

Luc's expertise lies in assisting students from a myriad of disciplines to refine and enhance their thesis work with clarity and impact. His methodical approach and the knack for simplifying complex information make him an invaluable ally for any thesis writer.