In the trade negotiations Mercosur-EU, time of suspicion
In the event organized by the COPA-COGECA and European trade organization CELCAA, in which representatives from the Member States and the European Commission, Spanish Agrifood Cooperatives has expressed reservations for a likely increase in concessions they can be offered by the Commission in the agricultural sector, especially in the livestock sectors such as pork, beef and poultry, as well as other Mediterranean products, such as garlic and orange juice.
For Spanish Agrifood Cooperatives Mercosur’s proposal for pigs, poultry and beef sector is exaggerated, especially in cattle and poultry, where the EU demands a grant of 300,000 and 250,000 tons respectively. In the case of the pig sector demand Mercosur 20,000 tons of concession, which would harm the European and Spanish sector.
Regarding the juice, the EU imports 90% of orange juice from Brazil, already highly dependent on this country that dictates the price. According to estimates by Agrifood Cooperatives of Spain the EU may not be competitive with Brazil under current conditions, a European farmer would need 20 cents € / kilo to be able to compete.
Spain accounts for almost 50% of garlic production in the EU being a very important from the point of social, economic and environmental culture.
Argentina is the second largest supplier of the EU with a contingent of 19,000 tons that is not fully utilized, so that an increase in the quota would be meaningless.
Negotiations with Mercosur have gained momentum after the change of government in Argentina and the recent visit of President of Uruguay to the EU. It is anticipated that in May the first exchange of offers and probably a negotiating round in September occur.
Cooperative Agro-alimentary of Spain wants to sensitize the Community authorities on the consequences of an agricultural agreement unbalanced for many community sectors, both farmers, present throughout the EU, and those other minor consideration but of enormous social and economic importance to those regions where they are produced, where any additional concession could lead to its demise. Mercosur is already the largest importer of agricultural and livestock products to the EU, but maintained its markets largely closed to exports from the EU.
Source: Spanish Agrifood Cooperatives