The trade agreement between the European Union (EU) and Mercosur can boost Spanish sales of the most exported products such as olive oil and wine, even if it generates rejection in other sectors such as fruits and vegetables and livestock because of the impact they can have. imports.
Spain is in favor of the ratification of this pact, signed in 2019, although several European countries led by France are opposed to it and they demand more guarantees from the South American bloc in the negotiations which have gained momentum in the latter part of the year.
The deal is expected to liberalize 99% of EU agricultural trade and that Mercosur opens its market to 88% of Community agricultural products.
Spanish agri-food and fisheries exports to Mercosur (Brazil, Argentina, Uruguay and Paraguay) increased in value by 5.4% per year in 2023to 420 million euros, while imports decreased by 29.4% (4,094 million).
The trade deficit increased by 32%amounting to 3.674 million, according to a recent analysis by the Ministry of Agriculture, Fisheries and Food (MAPA).
THE most exported Spanish products in 2023 it was olive oil, wine and must and stone fruit; On the import side, soybeans and meals as well as corn stood out.
Oil
The general director of the olive oil exporters association Asoliva, Rafael Pico, considers that any agreement liberalizing trade is “attractive”compared to the high tariffs currently imposed by some Mercosur countries.
However, he shows his concern regarding Brazil, the main South American importer of olive oil, since it will be necessary to see if exports from countries like Argentina, Chile and Peru go there. to the detriment of the Spanish.
Came
Sources from the Spanish Wine Federation (FEV) assure that the EU-Mercosur agreement can help diversify markets and make things easier for businesses. businesses in countries that, until now, were closed.
The sector would be favored by the gradual elimination of customs duties on still and sparkling wines; the protection of 357 European geographical indications for wines, spirits, beers and food products; rules aimed at facilitating the wine trade; and a system for resolving disputes between the parties.
Fruit
The Spanish Federation of Fruit and Vegetable Exporters Associations (Fepex) sees a possible “negative” effect of the agreement because “an impact analysis is missing on the Community fruit and vegetable sector and there is still a lot of opacity”.
Always the conditions of tariff disarmament are unknown of each chapter and article, according to Fepex, which emphasizes that access of community production to the Mercosur market is not guaranteed, whose countries require the negotiation of phytosanitary protocols by product to allow the entry of fruits and vegetables , unlike the EU.
Between January and August, Spain exported fruit and vegetables to the bloc for 39 million euros and imported them for 149 million. according to the federation.
Food
The general director of the animal feed manufacturers association Cesfac, Jorge de Saja, says that Spain, with a “strongly unbalanced” balance in animal feed, needs access to raw materials that ‘she can’t produce.
“Spanish industry has benefited and it needs this openness to maintain its competitiveness. Although this is not a perfect deal, we believe there is more to gain than to lose,” he adds.
Cattle breeding
The head of the Spanish Association of Beef Producers (Asoprovac), Matilde Moro, believes that the signing of the agreement would worsen the “delicate” situation of European cattle breeding and would accelerate job loss and value in its rural environment.
From the production of fodder and other foods intended for livestock fattening to antibiotics, animal welfare or traceability, the regulations applied to Mercosur are “often much more lax than those of the EU”who acts with “hypocrisy” while boasting of leading the fight against deforestation, climate change and antibiotic resistance, according to Moro.
Blockade on the border with Ukraine
This Saturday, Polish farmers blocked the Medika border crossing, located on the border with Ukraine and one of the largest in the countryas part of a new protest against the government’s agrarian policy and the signing of the agreement between the European Union and Mercosur.
The demonstrators They thus prevented the entry of trucks into Polish territoryalthough they allowed one of these vehicles to leave every hour from the Polish side towards Ukraine. However, this measure does not apply to private cars or military or humanitarian vehicles.
Protesters criticize Prime Minister Donald Tusk’s government for failing to respect their tax promises for farmers, who say they are showing solidarity with those from other countries, also opposed to the signing of the agreement between the EU and the Mercosur countries, according to information from the Polish press agency PAP.
As they expressed it, This pact would destroy European agriculture given that in the Mercosur countries the same legislation is not respected as in the countries of the community bloc, a situation similar to that which occurs with imports of Ukrainian agricultural products.
Blockages on the border with Ukraine occur regularly over the past year given the exemptions imposed on Ukrainian imports in response to the Russian invasion of the territory, a measure which was not well received in some EU countries.
