EU-Mercosur trade agreement may not have any real opposition
The EU- Mercosur trade deal could enter in the final stage in the next 2 days, as the discussions between the European Commission representatives and those of Argentina, Brazil, Uruguay and Paraguay are scheduled to take place on January 31.
Despite the fact that some associations and officials from Member State governments have expressed their concerns about the disadvantages brought by an increased quota of agri-food products from the Mercosur region, the political games will have the final word, as mentioned Irish Times.
Sources from the European Commission suggested that Phil Hogan, the commissioner for Agriculture and Rural Development, is hesitating about signing an agreement under this form while Cecilia Malmstrom is willing to go further with it. Beef is one of the critical issues in this deal as the annual quota for imported beef is expected to go from 70.000 tonnes to 100.000. In fact, Mercosur representatives are asking for a 200.000 tonnes quota and there are voices that suggest that commissioner Malmstrom is willing to go beyond the ceiling of 100.000 tonnes.
Malmstrom has described the potential deal as having three times the value of the EU’s recent agreement with Japan. Mercosur looks like a closed market, with high tariffs and non-tariff barriers. Tariffs of 35% apply to cars, 20-35% to key machinery products and 18% to soaps and beauty products. In 2016, the EU exported goods there worth 42 billion euros and, in 2015, services worth 22 billion euros.
Ireland seems to be "the last man standing" against this deal, as France looks more interested in opening a new market for the automotive industry even at the risk of endangering some of its beef producers. Officials of Copa and Cocega association are also requested caution in signing a trade deal that will disrupt some businesses in the agro-food industry in Europe. "A Joint Research Centre (JRC) report shows a potential trade deal could cost the EU agricultural sector over 7 billion euros", claims Pekka Pesonen, secretary-general of Copa and Cocega.
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