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Bucharest – The Forum of Professional Farmers and Processors from Romania (APPR Forum) expresses its concern regarding the economic and social implications of the future free trade agreement between the European Union and the Mercosur bloc, recently announced by the European Commission.
“Although we recognize the importance of trade exchanges and free trade agreements for economic development, we are concerned about the potential negative impact on farmers and agricultural industries in Romania and Europe, given the uneven context of production norms and the competitiveness of South American products. The agreement, while promoting broad tariff liberalization, fails to balance the significant differences between European production standards and those of the Mercosur bloc. The less strict subsidies, environmental, and social norms in Mercosur countries create unfair competition for European farmers,” the APPR Forum representatives stated in a communiqué sent to AGERPRES.
They emphasized that, in particular, cereal production could suffer substantial losses due to massive imports of South American products at reduced prices.
In this context, similar to the position previously expressed by the European Confederation of Maize Producers (CEPM), of which it is part, the APPR Forum draws attention to the risks regarding the loss of markets for European cereals, caused by massive imports of corn, sorghum, and rice at reduced or zero customs duties, which would weaken farmers’ financial security, as well as the impact on processing sectors, in the face of products imported at much lower costs.
“To ensure a fair application of the agreement and protect the European agricultural sector, especially its Romanian specificity, the APPR Forum proposes the following: introduction of legally binding clauses for compliance with social, environmental, and health norms by Mercosur exporters; rigorous control and traceability mechanisms for imported products, to prevent unfair competition based on inferior standards; revision of tariff mechanisms and safety clauses in case of market disruptions, to protect European farmers from economic shocks,” the communiqué states.
Additionally, the organization proposes ensuring the reciprocity of production norms between the EU and Mercosur, especially in critical areas such as pesticide use or compliance with animal welfare standards.
The EU-Mercosur agreement, which includes Brazil, Argentina, Paraguay, and Uruguay, was politically agreed on December 6 in Montevideo. The text will be presented to the Council and Parliament. The agreement aims to create one of the largest free trade zones in the world, encompassing over 700 million people, with the goal of reducing tariffs and stimulating trade. (18.12.2024)
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