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Additional guarantees for sensitive agricultural products such as beef and poultry
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Strict thresholds to trigger safeguards
- Commission will monitor the market and report every six months
MEPs backed extra safeguards on Tuesday to prevent harm to Europe’s agriculture sector following trade liberalisation with Mercosur countries.
The new regulation, already informally agreed with EU member states, was adopted by 483 in favour and 102 against, with 67 abstentions.
It sets out how the EU could temporarily suspend tariff preferences envisaged in the EU-Mercosur trade deal on agricultural imports from the Mercosur countries (Argentina, Brazil, Paraguay, and Uruguay), if a surge in these imports harms EU producers.
Under the new rules, the Commission will launch an investigation into the need for protection measures when imports of sensitive agricultural products, including poultry, beef, eggs, citrus and sugar, increase by 5% on a three year average (below the 10% per year proposed by the Commission) and if, at the same time, import prices are 5% below the relevant domestic price.
An investigation may also be requested by a member state, or a natural or legal person representing the industry, or an association acting on behalf of the industry, in the event of a threat of serious injury to the industry concerned.
At least once every six months, the Commission will have to present a report to Parliament assessing the impact of imports of sensitive products.
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Gabriel Mato (EPP, ES), standing rapporteur for Mercosur, said: “The safeguards will ensure that the EU–Mercosur agreement is accompanied by a balanced and credible protection mechanism for our agricultural sector. They strengthen market monitoring, introduce clear and objective criteria to detect disruptions, and allow for faster action for sensitive products when there are indications of harm. They will provide farmers with stability and predictability, while preserving the overall balance of the agreement.”
Next steps
Once formally adopted by the Council, the regulation will be published in the Official Journal of the EU. It will apply once the Mercosur Interim Trade Agreement enters 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. Parliament has asked for the opinion of the European Court of Justice on whether the agreements are compatible with EU treaties. In the meantime, Parliament cannot ratify the agreements, but the European Commission may opt for the provisional application of the agreement once at least one Mercosur country has completed its ratification.
