reasons for anger

The anger of farmers is rekindling throughout France. The EU-Mercosur agreement is at issue. But what are the dangers?

99,000 tonnes of beef imported

On one side the European Union and Germany, on the other France: it seems that, on the proposed free trade agreement with Mercosur, interests diverge. German Chancellor Olaf Scholz calls for it to be finalized without delay, after more than two decades of negotiations. But German industry would undoubtedly benefit, as would Spain. On the French side, Emmanuel Macron has just reminded from Buenos Aires that he would not sign this agreement, but the European Union can undoubtedly do without France.

What are the reasons for the farmers’ anger? Firstly, if the agreement was signed, 99,000 tonnes of beef from Mercosur countries could enter the European Union. Meat whose breeding conditions and treatment received may well not correspond to the criteria imposed on European farmers. This free trade treaty plans to eliminate more than 90% of customs duties for products coming from the two continents, in particular for 60,000 tonnes of rice.

Small volumes, but not trivial

For their part, Mercosur countries would lift customs duties on cars, clothing and fresh fruit. came from European countries. A reduction that could represent a significant differential, from 27 to 35%. Products imported without Mercosur customs duties would also include 25,000 tonnes of pork, 180,000 tonnes of poultry (1.4%), and 190,000 tonnes of sugar. But with different production costs and health and environmental standards which would require mirror clauses in order to comply with the Union’s strict food safety standards.

For its part, the European Commission considers that it is only a question of “small volumes”, compared to what the Union produces annually. Thus beef imports represent 1.6% of European production, 1.2% of sugar, 1.4% of poultry and only 0.1% of pork produced. However, even if the volumes concerned are low compared to European production, they can still shake up sectors, particularly in France.

Read also
Understanding everything about international trade agreements

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Source: www.consoglobe.com