The Minister of the Economy, Bruno Le Maire, promised, Wednesday January 31, that France would engage in a “arm wrestling” during negotiations so that the agreement between the European Union (EU) and four Mercosur countries (Brazil, Argentina, Uruguay and Paraguay) is not “not signed as is”. ” As it is, [cet accord] is not good for our breeders”insisted the minister CNews and Europe 1while France has been shaken for almost two weeks by mobilizations of angry farmers.
The Minister of Agriculture, Marc Fesneau, will be in Brussels on Wednesday afternoon to defend several of their demands, including the rejection of the trade agreement between the EU and the Latin American bloc.
EU-Mercosur agreement: what is it about?
This free trade agreement was concluded on June 28, 2019 after a long negotiation process begun in the early 2000s. However, it has not yet been ratified and negotiations continue – not without difficulties.
It is the largest free trade treaty concluded by the EU in terms of population concerned (780 million people) and trade volumes (between 40 and 45 billion euros of imports and exports). .
Above all, it aims to facilitate trade between Europe and South America by gradually eliminating almost all customs duties applied to EU exports to Mercosur. It also provides for a significant beef import quota and recognition of nearly four hundred protected geographical indications.
Why are farmers opposed to it?
They denounce the threat that the massive arrival of South American foodstuffs would pose to French agriculture: the agreement provides, among other things, for the removal of customs duties on the import of 45,000 tons of honey, 60,000 tonnes of rice or 180,000 tons of sugar.
But the point which crystallizes the tensions concerns the quota of 99,000 tonnes of beef taxed at 7.5 %, to which are added 60,000 tonnes of another type of beef and 180,000 tonnes of poultry exempt from customs duty. Unfair competition unanimously denounced by breeders. They believe that it will be difficult for them to be competitive with large South American farms, which are more numerous and subject to fewer health and environmental standards.
“Mercosur breeders are already ultra-competitive. What is the point of opening this quota to them with reduced customs duties, especially since we know that their production does not meet the criteria imposed in Europe? »asked the National Bovine Federation in The world after the agreement reached in 2019.
What is the position defended by the government?
As it seeks to assuage farmers’ anger, the executive has reiterated that it is against ratifying the deal. The government is calling for mirror clauses to guarantee reciprocity of health and environmental standards between the two blocs. The Elysée even assured Monday that negotiations in Brussels had been interrupted due to opposition from France. From Stockholm, Emmanuel Macron reaffirmed on Tuesday that he was opposed to it due to “rules that are not consistent with ours”.
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Conditions of an agreement “are not united”, recognized, for its part, the European Commission. Last Thursday, the head of European diplomacy, Josep Borrell, admitted that the agricultural crisis in Europe could constitute a ” obstacle “ upon conclusion of an agreement. But talks between EU and Mercosur negotiators took place last week in Brazil, and “discussions at technical level will continue”, underlined the spokesperson for the Commission, Eric Mamer. Mr. Macron is also due to meet Thursday with the President of the Commission, Ursula von der Leyen, on the sidelines of a European summit.
“Believe me, when France wants something in Europe, it has enough weight to impose it”assured Mr. Le Maire on Wednesday, adding that “it is thanks to the President of the Republic, and only thanks to him, that this agreement is not signed today”.
“As long as we do not have clear answers, and something that avoids subjecting our farmers to unfair competition, there cannot be an agreement”for his part, declared the Minister of Agriculture, Marc Fesneau, on South Radiobefore going to Brussels on Wednesday afternoon. “France is quite alone at the European level” to want to oppose it, he admitted. But Mr. Fesneau is walking on a tightrope regarding this agreement, the principle of which was defended by the minister. “We need agricultural exchanges, all countries [de l’UE] are not able to meet their needs “, he said, recalling in particular that “Half of French cereals leave the borders”.
What next for the negotiations?
“It is premature to announce the next date, if there is a new date, [du prochain cycle de négociations] », has already warned the Commission.
The conclusion of this agreement is considered essential by several European capitals, including Berlin. Negotiations on the trade agreement between the EU and Mercosur “must be concluded quickly”declared the German Chancellor, Olaf Scholz, and the Argentine President, Javier Milei, during a telephone interview in early January.
“A majority of EU countries are in favor of this agreement”, recalls Elvire Fabry, expert at the Jacques Delors Institute, interviewed by Agence France-Presse (AFP). In the context of the confrontation between China and the United States, many countries are seeking to diversify their trade, she underlines. Nevertheless “the probability that an agreement will be signed before the elections to the European Parliament”from June 6 to 9, “is extremely weak”judge André Sapir, expert at the Bruegel Institute, also interviewed by AFP.
The European executive recalled on Tuesday that it had received a mandate from EU member states to negotiate this agreement and that it intended to bring the discussions to a conclusion. The conclusion of such an agreement must then be endorsed by the Twenty-Seven, by qualified majority. But each country will then have to ratify this new treaty before its implementation, offering de facto the possibility for a country to block it.