EU-Mercosur agreement will significantly boost trade between the EU and the Mercosur bloc. By giving the Mercosur bloc a preferential access to the European food market, the deal would allow European consumers to enjoy a greater choice of beef, poultry, sugar, and honey at a lower price. The EU-Mercosur FTA is undoubtedly a big win for consumer choice.
Attempts to block it on the grounds of climate change not only undermine the significance of this opportunity but also fail to realise the benefits following from this new trade relationship. These are numerous on both ends and include exports too. Duties on exports of wine and industrial goods from the EU would be reduced, meaning that the deal would give European exporters a considerable access to the Southern Common Market.
This should be kept in mind when considering voices against the deal: the EU would pass on the opportunity to grow, foster a closer relationship with a fast-growing foreign partner, and, most importantly, to bring cheaper products to consumers in the 4 Mercosur countries.
Moreover, in terms of much-feared agricultural imports, the deal would define a number of food imports that can be imported tariff-free or at a lower rate. Free trade agreements do not mean an unrestricted flow of goods from abroad. They aim to expand trade while retaining some regulations and keeping in mind potential challenges for domestic producers brought about by foreign competition.
Farmers should adapt to reality
Though these fears raised by farmers across the EU are highly exaggerated. For instance, in 2017, the EU produced about 15.0 million tonnes of poultry meat. Under the EU-Mercosur FTA, only 180,000 tonnes of poultry from the Mercosur would be allowed to be imported tariff-free. The numbers and rates are different and do take into consideration the state of food production in the EU. Therefore, seeing the deal as a dark hour for the agricultural sector in the EU is rather unjustified.
For the Mercosur countries, the historic deal with the EU would open the door to many other trade agreements across the world. Concluding a big trade agreement with such an important player in the field of international trade as the EU would attract other countries to the Mercosur and increase its bargaining power for future trade negotiations. Additionally, the deal would also encourage investments as well as boost consumer choice and enhance international cooperation.
Overall, the EU-Mercosur deal is an exciting opportunity for the EU to put the interests of European consumers first and to send a powerful pro-trade, pro-cooperation message to the world.