The European Commission has unveiled a new proposal aimed at strengthening protection mechanisms for European farmers within the framework of the forthcoming EU-Mercosur Association Agreement.
The regulation, presented on Thursday, seeks to establish rapid-response safeguards against potential surges in imports or significant price drops that could jeopardize the economic stability of EU agricultural producers — particularly in sensitive sectors such as wine, ethanol, beef, and sugar.
Reinforcing Trust in Trade Commitments
The initiative comes in response to concerns voiced by European farmers and Member States during the negotiation phase of the Mercosur agreement, which links the European Union with Argentina, Brazil, Paraguay, and Uruguay. While the trade pact includes specific tariff quotas for sensitive products, the Commission’s proposal introduces an additional safety layer to ensure swift action when market disruptions arise.
Under the draft regulation sent to Member States on September 3, tariff preferences granted to Mercosur exporters could be temporarily suspended if imports exceed certain thresholds or if prices fall by more than 10%. These triggers would enable the EU to act decisively to prevent long-term harm to its agricultural sectors.
Mechanisms for Early Detection and Response
The proposal sets out clear procedures for applying bilateral safeguard measures, including enhanced market monitoring, periodic assessments, and early warning systems. The Commission commits to tracking imports of sensitive agricultural products — including beef, poultry, rice, honey, eggs, garlic, ethanol, and sugar — through continuous data collection and collaboration with national authorities.
Every six months, the Commission will present a detailed report to both the Council and the European Parliament, evaluating how imports from Mercosur countries affect EU markets. These reports are intended to ensure transparency and enable timely intervention.
Criteria for Investigation and Safeguard Activation
The proposed regulation defines specific thresholds for opening an investigation. An inquiry will be launched if:
- Imports under preferential conditions increase by more than 10% compared to the previous year.
- Import prices from Mercosur fall 10% or more below EU average prices.
- Domestic market prices for key products experience a 10% drop year-on-year.
If investigations confirm that European producers face serious harm or a credible threat, the European Commission may temporarily withdraw tariff preferences for the affected products.
Accelerated Procedures and Member State Involvement
To ensure responsiveness, the Commission pledges to begin an investigation promptly upon request from a Member State, provided there is sufficient supporting evidence. In urgent situations, provisional measures may be introduced within 21 days, while full investigations must conclude within four months — a significantly shorter timeline than what had originally been envisioned in the Mercosur agreement.
Balancing Openness with Protection
This proposal underscores the EU’s effort to balance the principles of free trade and fair competition. While the Mercosur agreement is expected to open new export opportunities for European industries, the Commission recognizes the need to safeguard the livelihoods of farmers and maintain confidence in the European agricultural model.
As negotiations toward ratification continue, the regulation offers reassurance to producers that the EU is prepared to act decisively to mitigate the risks associated with one of the largest trade deals ever signed by the bloc.
Source: Vinetur