The draft regulation sets out how, in the context of the Mercosur trade agreement, the European Commission could decide to temporarily suspend tariff preferences on the import of certain agricultural products considered sensitive (such as poultry or beef) from Argentina, Brazil, Paraguay and Uruguay if these imports are seen to be harming EU producers.
The most important measures agreed are:
- An increase in import volume of more than 8% compared to the three-year average would be evidence of serious injury and would trigger an investigation into suspending preferential tariffs
- A decrease in prices of more than 8% compared to the three-year average would also be treated as serious injury and give reason to start an investigation.
- The Commission may extend the scope of its monitoring to non-sensitive products, upon request by the EU industry.
- Investigations should be concluded within at least 6 months in the case of non-sensitive products and as quickly as possible but certainly after 3 months in the case of sensitive products.
- For sensitive products there will be the possibility to adopt provisional measures, without delay and within 21 days after a notification.
- The Commission will constantly and proactively monitor imports of sensitive products and produce a monitoring report, at least every 6 months, with an assessment of the impact of those imports, and report to Parliament and Council.
- The exchange of data between member states and the Commission will be improved.
- The European Commission will issue a statement ensuring stronger alignment of production standards applied to imported products, notably on animal welfare and pesticides from Mercosur countries.
Rapporteur Gabriel Mato (EPP, ES) stated afterwards: “Today, we send a clear message: we can move forward with the Mercosur agreement without leaving our farmers unprotected. We have agreed on a robust, swift and legally sound safeguard mechanism that allows us to respond in a timely manner to market disruptions and provides the certainty the sector has long been calling for.”
Bernd Lange (S&D, DE), Chair of the International Trade committee said: “We have done our utmost for our agricultural sector. They can rest assured that any potential disruption to our market will be detected in good time and dealt with. Now that everyone understands how this additional safety net will work, the way is clear for the approval of the much-needed EU-Mercosur trade agreement.”
Next steps
The provisional agreement will need the formal adoption by both Council and Parliament before it can enter into force.
Background
The bilateral safeguard clauses are to be part of both the EU-Mercosur Partnership Agreement and the EU-Mercosur interim Trade Agreement. Those two agreements still need to be ratified by the European Parliament, following their signature, expected later this month.
The EU is Mercosur’s second-largest trading partner in goods, with exports of €57 billion in 2024. The EU accounts for a quarter of total Mercosur trade in services, with EU exports to the region amounting to €29 billion in 2023.
Discussion about this post