New markets for Greek agri -food products, especially for high quality products with geographical indications, opens the much -discussed agreement set by European Union with Mercosurafter negotiations that lasted no more than 25 years.
This new free trade zone will benefit more than 700 million consumers on both sides. A total of 350 European geographical indications are recognized in the agreement, a development that potentially favors the promotion of emblematic Greek products such as feta, olive oil and Kalamata olives. It is noted that the Mercosur zone consists of six large South Aerika markets such as Brazil, Argentina, Uruguay, Paraguay, Venezuela and Bolivia. It is emphasized, however, that Venezuela’s participation has been suspended, while Bolivia, which is the youngest member of the team, will not yet apply the trade agreement with the EU.
“We recognize the opportunities that may arise from the agreement with the Mercosur countries, but also the need to safeguard food adequacy in the European market, but it is clear that Greek primary production, and especially high quality products with geographical indications, need practical protection. The entry of a large volume of cheap agricultural products from countries with different productive standards should not undermine the value and quality of Greek agricultural identity, “he said in a statement to the Athens -Macedonian News Agency Minister of Rural Development and Food, Costas Tsiaras.
As he pointed out, “as YPATA, we are actively involved in the competent European bodies and have already shaped common positions with other countries that share the same concerns. With clear arguments and documentation, we are seeking strict observance of European standards, both at environmental and healthcare for all imported products. Our goal is double: to enhance the competitiveness of Greek producers and to shield the Greek countryside by unfair competition. Our strategy focuses on highlighting our qualitative advantages and maintaining social cohesion. Greece does not stand passively against Mercosur. With responsibility and plan, we defend the Greek producer and our agricultural production, but also take care of the safety of imported food. “
For his part, the Secretary General of Rural Policy and International Relations of the Ministry of Rural Development and Food, Costas Bagineta As he said to RES-EIA, “The negotiations put terms and choices of the products that will be imported to be high quality standards and their production process is in line with the requirements of the EU regulatory framework”
Regarding the negotiations held by Secretary General of the Ministry of Education noted that “our country is actively involved in European fora and councils, closely monitoring all the negotiations, creates alliances with other Member States, with which we share common concerns about our products, and at every opportunity to argue to highlight its importance and promoting its importance and promoting its importance and promotion. but also recognition, with a special target for the protection of Greek products with a geographical indication. “
How the Greek trade balance is shaped by Mercosur countries
Greece’s trade balance data with the Mercosur countries highlight a clear imbalance in agricultural products, with our country recording deficits against the main commercial partners of South America.
According to 2023 data from the Ministry of Rural Development and Food:
- The Greek trade balance of agricultural products and foods with Argentina is deficient at the expense of our country, with the trade deficit amounting to EUR 284 million in 2023. Our imports to agricultural products and food amounted to approximately EUR 285 million and our corresponding exports to EUR 95 million.
- The Greek trade balance of agricultural products and foods with Brazil is deficient against us, with the commercial deficit of EUR 208.5 million in 2023. Our imports to agricultural products and foods amounted to EUR 220.8 million and our corresponding exports to Brazil.
- With Uruguay, the trade balance of agricultural products and foods is in surplus in favor of Greece and is € 1.7 million in 2023. Our imports to agricultural products and food amounted to € 1.1 million and our corresponding exports to Uruguay were € 2.8 million.
- Finally, the Greek trade balance of agricultural products and foods with Paraguay is deficient against our country, reaching EUR 12.9 million in 2023. Our imports to agricultural products and food amounted to € 13.4 million and our corresponding exports to Paraguay were much lower.
What is agreement with Mercosur countries and reactions
The agreement signed on December 6 of last year is a landmark trade agreement, which, according to the European Commission, will lead to the creation of the largest free trade zone worldwide, giving significant mutual economic benefits.
Among other things, the two sides will abolish 90% of the duties in force today. This means that the profit for European exporters will reach up to 4 billion euros on a yearly basis.
The total volume of trade in the two sides is, according to 2023 data to € 110 billion.
However, the agreement is not treated in a single manner within the EU, as it has caused controversy between the Kerats – Melon.
For Greece, the agreement is a complex issue, but our country is not the only one that has expressed its reservations. Countries such as France, Belgium and Poland have expressed strong objections with the spearhead of their agricultural production and protection of European quality and environmental standards.
Finally, countries such as Germany, Sweden, Finland and Spain support the agreement, approaching it both with economic and geostrategic criteria, while the attitude that Italy will take.