Source: European Parliament
The agreement between the EU and the Mercosur represents a key geostrategic and economic interest for the EU, particularly under the current threats to the global trade order.
The agreement creates new opportunities for EU agri-food products in the highly protected Mercosur markets, by eliminating duties on key EU products.
It also protects EU sensitive products, such as beef, poultry and sugar, through carefully calibrated tariff rate quotas, which are limited to a very small share of EU consumption, and robust safeguards in case of adverse market effects.
Economic studies carried out by the Commission confirm that the market impact of the Mercosur agreement for EU sensitive products would be very limited[1].
Although these studies are carried out at EU level, it is unlikely that there would be a disproportionate impact on a particular region or Member State, such as Poland, given that potential increased import flows are expected to be absorbed by the whole EU internal market.
Moreover, one study commissioned by a national administration broadly confirms the results of the EU-wide studies[2]. In addition, the Commission will develop a Unity Safety Net to protect Member States ‘in the unlikely event that the agricultural market situation in the EU is negatively impacted following the implementation of the Agreement’ that will include the announced EUR 1 billion reserve in the context of the proposal for the next multiannual financial framework.
Finally, the Commission is currently analysing the economic impact of the E U-Mercosur agreement negotiated outcome, which is expected to be presented by the Commission to the Council and the European Parliament simultaneously with the proposal for signature and conclusion of the agreement.
- [1] Sustainability Impact Assessment in support of the Association Agreement negotiations between the EU and Mercosur: https://policy.trade.ec.europa.eu/analysis-and-assessment/sustainability-impact-assessments_en; Cumulative economic impact of upcoming trade agreements on EU agriculture: https://publications.jrc.ec.europa.eu/repository/handle/JRC135540.
- [2] https://www.gov.ie/en/publication/1c8a6-economic-and-sustainability-impact-assessment-for-ireland-of-the-eu-mercosur-trade-agreement/.