Others in the European Union are attempting to expedite the free trade pact. Farmers are concerned about increased competitiveness, while ecologists are concerned about additional deforestation.
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| EU-Mercosur Agreement (Source: IntoEurope) |
At this time, the discussion over Mercosur, the free trade pact that the European Union has been debating for years with four Latin American countries unified in a single trading zone, has resurfaced. Germany wants to move faster, which is why socialist Olaf Sholz has come to South America in search of a sustainable compromise. France remains hesitant, even as Emmanuel Macron begins to consider reciprocity terms to safeguard European farmers, who might persuade him to approve the accord. Is this Italy? His opinion has shifted over time, but the administration led by Giorgia Meloni appears to be relaxing its hyper-critical stance on this type of deal, which continues to alarm many Italian farmers.
It is feasible to combine commerce expansion with environmental sustainability. This is the formula advocated by the German government coalition, which appears eager to finalize the deal with South American countries. Over all, agricultural items and meat are appealing, but they are also the primary cause of deforestation, particularly in Brazil. The discussions have gained fresh momentum with the re-election of Luiz Inácio Lula da Silva, since preliminary judgements against far-right exponent Jair Bolsonaro have been dismissed. "Greater sustainability and strategic strengthening of our commercial relations: with the Mercosur agreement, we now have the possibility for both," German Minister for Food and Agriculture Cem Ozdemir added.
The department head flew to South America for six days with his colleague in economics, Robert Habeck, and a business delegation. In early 2023, Chancellor Olaf Scholz visited the same spot. All of this points to the importance of Germany moving quickly on the deal. On German television, the agriculture minister, who is also a Green Party member, emphasized that the present draft deal imposes stringent limitations on agricultural imports into the EU. As a result, Berlin claims that the impact on domestic agriculture will be minor. Several countries are skeptical about this assertion.
Opposition between France and Austria
First and foremost, Paris is putting the brakes on, fearing implications on the domestic agriculture industry, which may lose out on food imports that are much too cheap in comparison to transalpine products. Macron spoke out against the continuation of discussions without honoring the "reciprocity provisions" at the Paris Agriculture Show in February. "An agreement with South American nations is not feasible if they, like us, do not respect the Paris agreements and do not put the same environmental and health limits on our producers," asserted the French president.
Austria's viewpoint is even apparent. Minister Norbert Totschnig highlighted his dissatisfaction with the accord before the Agricultural Council in Brussels in March. "There are still no substantial reactions from the EU Commission on import limits or protective measures against competition distortions," said the bearer of the agriculture ministry, adding that "there is also a lack of comprehensive EU origin labeling." As a result, Vienna opposes the deal, criticizing the concept of putting increasingly greater requirements on European farmers while importing items such as beef, soy, and sugar from other countries at lower rates and without such severe quality controls.
Austria's problems are comparable to those of European farmers. With the Farm to Fork strategy, which calls for increased food quality and environmental protection, Member State producers would find themselves competing ruthlessly with large exporters capable of offering low-cost foods without having to adhere to EU standards in areas such as environmental protection and animal welfare. The current draft deal, according to Copa-Cogeca, which represents agricultural corporations and cooperatives, is inadequate since it fails to address these inequities.
Italy's openings
Despite its proximity to the agricultural world, Italy, led by Giorgia Meloni, offers more than a portal to the Treaty of Rome. The administration has already altered its mind over Ceta (the free trade agreement between the European Union and Canada), which the Brothers of Italy earlier branded "traitors filth." It is also anticipated to do so in terms of accords with South America at this time. "CETA is a benefit," agricultural minister Francesco Lollobrigida said, adding, "on agreement with Mercosur, we must consider carefully since it is vital to preserve the competitiveness of our excellent goods."
The head of the department then specified: "We must guarantee the stability and development of our businesses, with the whole supply chain of work that they bring behind and on these data we open a reflection and an in-depth study ". Lollobrigida's statements suggest that the decision is not weighed only by the strictly agricultural world, which could lose out.
Mercosur is an abbreviation for Market Unico del Sur, a South American single market to which four nations belong: Argentina, Brazil, Paraguay, and Uruguay. Venezuela is also a member, however it is now suspended. The area impacts the interests of about 290 million people, the vast majority of whom live in Brazil, which has a population of over 200 million people. In 2010, there was over ten billion dollars in internal commerce, but the major business is done outside the country, owing to trade links with the United States, China, and the European Union. For years, the latter has been writing a pact to reduce customs charges in order to increase commerce with this massive market, which is rich in raw resources and may serve as an additional outlet for European industries.
Fields rather than forests
Small farmers and environmentalists are the major critics in South America. "Every day, vast tracts of forest, particularly in the Amazon, are being lost for these basic resources (meat and soy, ed). Keeping this level of imports would have disastrous effects, so raising it ", said activists from Fern, an environmental Organization that is accompanying a South American delegation on a European trip to raise awareness about the issue among public and legislators. "The current text, whose negotiations began a century ago, does not respond to the objectives we set ourselves with the Paris climate agreement on the one hand and the Sustainable Development Goals on the other," said Belgian Verdi MEP Saskia Bricmont after meeting with some representatives of the farmers' delegation.
Conservationists believe increased trading threatens to wipe out small-scale production, endangering forests that are already under immense stress. Important habitats for indigenous peoples and greenhouse gas absorption may disappear much faster to make space for vast agricultural enterprises aimed at feeding (also) European residents. "The fate of the planet and the populations concerned cannot be subordinated to the desire to export European cars in exchange for soybeans and Latin American beef, appropriating, to the detriment of local needs, the raw materials required for the dual climate and digital transition," Bricmont said, calling for a reopening of negotiations aimed at improving the treaty's balance.
Source: TODAY.IT