OR European Commission today presented a framework to strengthen the protection of European farmers after Corporate relationship between European Union and her countries Mercosur (Argentina, Brazil, Paraguay and Uruguay).
As the Commission states, the proposed security valves implement the guarantees provided to the farmers of the EU based on the legal proposal under the EU – Mercosur Agreement, which was sent to the EU Member States on September 3.
OR European Commissionwhich has full jurisdiction for EU trade agreements with third states so that it can better negotiate, essentially responds to the strong concerns of certain Member States, such as its France and her Poland, who consider that trade agreement in question may hurt them French and Polish farmers.
What is predicted for unforeseen increase in imports and for unjustified reducing prices by Mercosur
In practice, the guarantees presented by Commission, They provide – according to the EU executive body – an additional level of certainty to EU farmers beyond the carefully calibrated gradual application of targeted quotas agreed with Mercosur for imports in sensitive areas.
“In the unlikely case of unpredictable and harmful increase in imports by Mercosur or unjustified decrease in prices for EU producers, rapid and effective protection will be implemented,” the Commission said, stressing that “the proposal determines procedures for the warranty of timely and effective implementation”.
At the same time, the committee’s proposal also includes specific provisions on some EWitten agricultural products, Like beef, poultry, rice, honey, eggs, garlic, ethanol and sugar.
Special provisions on sensitive products include enhanced monitoring, clear activation factors and rapid response.
Enhanced monitoring
OR Commission It will systematically monitor market trends in the imports of certain sensitive agricultural products under the agreement. Based on these results, the Commission will send a report to the Council and the European Parliament every six months each six months assessing the impact of these imports on EU markets.
This regular and detailed monitoring will allow the identification of any early stage risks and immediate measures to address potential negative impacts. These reports will cover the Union market and, if necessary, will also cover the special situation in one or more Member States.
Clear Factors of Activation
The Commission will consider, as a matter of priority, cases where there is a sharp increase in imports or a decrease in domestic prices concentrated in one or more Member States.
As a rule, the Commission will initiate research whether Mercosur import prices are at least 10% lower than the prices of the same or competitive EU products and there is a) an increase of more than 10% in the annual imports of a Mercosur product in preferential terms or (b) a 10% reduction in the import prices of this product from Mercosur. If the investigation concludes that there is serious damage (or threat of serious damage), the EU could temporarily withdraw tariff preferences for damage.
Rapid reaction
According to the proposal, the committee is committed to moving Research without delay At the request of a Member State, when there are sufficient reasons and activate temporary assurance measures at the latest 21 days after receipt of the request in the most urgent cases, if there is a sufficient risk of damage, aiming to complete the investigations in 4 months (virtually faster than 12 months).
The regulation proposed today by Commission should be approved by the European parliament and EU Council with the usual legislative process.
The trade agreement with its countries Mercosur was a landmark for the Commission, as it took more than 25 years of continuous negotiations between the two sides. According to the European Commission, this agreement is expected to create the largest free trading zone in the world, covering a market of over 700 million consumers. EU businesses will enjoy the advantage of the first moving, beneficial from lower duties in an area where most other countries face high duties and other trade barriers.
The Commission estimates that the agreement can increase EU annual exports to Mercosur by up to 39% (49 billion euros), supporting more than 440,000 jobs across Europe. It will reduce Mercosur’s often prohibitive duties for EU exports, including basic industrial products, such as cars (currently 35%), machinery (14-20%) and pharmaceuticals (up to 14%).
Vassilis Dalianis