more 40 entities in the agro-industrial chain Argentina they spread In it, they emphasized that a partnership agreement has been signed between the two parties. Mercosur and the European Union It will generate gains in trade, investment and cooperation. At the same time, it warned of “agricultural safeguard” proposals being pushed by Europe that could impact Mercosur’s exports.
Both organizations supported the agreement and highlighted its strategic potential, but expressed concerns about the amendments being pushed by the European Commission before its final signature. As they explained, this is a clause that allows the European Union. restrict Mercosur exports even within already negotiated quotas;measures they are considering contrary to the spirit of the treaty and the rules of the World Trade Organization (WTO).
This document was signed by Key organizations in rural Argentinaamong them Argentina Rural Society (SRA), Koninagro, Rural Federation of Argentina (CRA), Buenos Aires Cereal Exchange, Rosario Stock Exchange, Ciara – Sec, Argentina Cooperative Association (ACA), corn, argentrigo, Asagiru and other cameras included as well Argentina Agricultural Industry Council (CAA).
The document states that the agreement “It will bring multiple systemic and concrete benefits to both sides, both in terms of trade, cooperation and investment.“.He also thought:This partnership agreement has always been strategic, but it has taken on special dimensions given the current extremely difficult global geopolitical situation.”.
They questioned the project presented by the EU. “our clear rejection of the draft regulation prepared by the European Commission to introduce bilateral safeguards for agricultural products;” they added.They are attempting to arbitrarily restrict Japan’s exports in violation of the Association Agreement and World Trade Organization (WTO) rules.“This would create unpredictability and uncertainty in the exchange of products of this type, which is exactly the opposite of what is encouraged in the soon-to-be concluded agreement with the EU,” they warned in the document.
specialist Maximiliano Morenoof, International Institute for Agricultural Negotiations (INAI Foundation)argued as follows:The first thing to keep in mind is that the Mercosur-EU agreement is very important. If signed into law, which we expect to happen in the near future, it would bring huge benefits to the economy in general and the agricultural sector in particular. This must always be emphasized. This sector is one of the most supportive of the agreement. ”
“The problem is that France is repeating the press as usual, and so are the farmers. And now they want to invent a new thing called agricultural safeguards” he said. For Moreno, this new mechanism would also apply in cases where agreed quotas already exist.This also applies to products that already have quota restrictions.”.
In a statement, they criticized attempts to apply safeguards to already limited products. “Safeguards are ‘exceptional’ trade measures and should never be applied to products where liberalization is limited to quantities or tariff quotas, especially given that they do not represent more than 2% of the European market.” And they emphasized that “There is no way Mercosur’s exports, which only have the aforementioned level of market share, could cause ‘serious damage to European industry,'” he said. They warn in their document.
Moreno commented on this point as follows:If you already have a 1-2% share of the domestic market, there is no way you can become a French farmer. Nevertheless, they now want to create an excuse to halt Mercosur exports even within its limits.”.
In line with the group’s arguments, the expert argued that European projects can suspend exports even in situations where there are already negotiated quotas.
Free trade agreements contemplate proven harm defense mechanisms, but this proposal would expand the conditions for triggering them. The European Commission suggests that a 10% increase or decrease in quantity or price is sufficient. “Under the excuse that they want to implement what is written in the agreement, what they are actually doing is unilaterally redefining what has already been agreed. and contrary to World Trade Organization rules” he pointed out.
As an example, Moreno explained that if Mercosur were to apply similar restrictions on European products, for example to limit the growth of import volumes within quotas, the predictability that these agreements seek to guarantee would be lost. As he emphasized, any change to this principle would also undermine confidence in commerce.
At the end of the statement, companies specified that they would incorporate this new mechanism. The balance reached after years of negotiations will change.. They pointed out:Initiatives of this nature would undermine the core objective of the agreement, which is to expand and diversify trade between the parties based on a predictable and transparent regulatory framework.”.
The two leaders also stressed that “this proposal undermines Mercosur’s legitimate expectations to make the most of the tariff preferences it has obtained, including those limited by tariff quotas.” They concluded that “these priorities were agreed on the basis of a complex and delicate balance of concessions that required decades of negotiations, and therefore should be respected.”
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