The reports from Euractiv show that the South American bloc trade agreement with the European Union will be finalised at the Mercosur Summit of States in Montevideo (to be held on 5-6 December). Farmers have been protesting against an agreement that will let duty-free imports of food from Latin countries into the EU for many months. On 12 November, another protest took place in France.
The farmers' opposition to the Mercosur agreement in early 2024 led to the suspension of talks. "Politico" suggests that the Group 20 leaders' summit next week in Rio de Janeiro is to revive talks on an agreement on which EU negotiators have been working for a 4th of a century. In the meantime, however, there will be a visit by Chinese leader Xi Jinping to Brazil, which may overshadow the work on the agreement.
– All the cards are on the table. They want to make certain that the agreement is close so Ursula doesn't gotta fly to South America for nothing. – suggested 1 of the people acquainted with the EU-Mercosur negotiations. A series of individual talks by the European Commission's head Ursula von der Leyen with South American leaders are scheduled to be held in Brazil at the end of November to address the gaps in the agreement. Mercosur countries: Brazil, Argentina, Uruguay, Paraguay and Bolivia are to push for the finalization of the talks. On 2-4 December, during the Mercosur Summit in Montevideo, the rotating presidency would be taken over by Argentina, and this would then lead to the conclusion of the agreement.
The agreement sometimes referred to as "car cow" provides for the abolition of trade barriers and the creation of a single marketplace of almost 800 million people, which accounts for 1 5th of global GDP. Its supporters at the head of Germany argue that it is long overdue due to a crucial increase in Chinese influence on the continent that European companies are displacing.
On Tuesday, the fresh head of the Commission liable for conducting EU diplomacy Kaja Kallas warned that "if we do not conclude a trade agreement, China will actually fill this gap". Their investments increased 34 times between 2020 and 2020.
Negotiations on public procurement, part of the environmental agreement and legal structure have not yet been finalised. The Latin States request more flexibility and time for local entrepreneurs to adapt to competition with EU rivals. Furthermore, Brazil wants to defend its local car manufacture from imports of cars from the EU, especially electrical vehicles.
In favour of postponement of negotiations is the French Government, which fears flooding the home marketplace with agri-food products. More than 600 French deputies from both chambers of parliament have made an appeal in the Le Monde diary to the EC Chief to abstain from the agreement. It was argued that "the democratic, economic, environmental and social conditions essential for the conclusion and adoption of the Mercosur agreement are not met."
The agreement could block a qualified number representing at least 35 percent of the EU population at the voting phase in the associate States. To this end, Paris seeks allies in Poland, among others. The Italian Government was besides unsuccessfully tried to convince. The French besides proposed that the Paris Agreement on Climate be included in the agreement with the Mercosur countries, so that, in the event of a breach of climate targets by Latino countries, for example due to deforestation, the agreement could be suspended.
The EC is trying to calm the French's concerns, claiming that at the final phase of the negotiations it will fight to take account of French demands, although the Mercosur countries have long signalled that they do not intend to step down on this issue. French agriculture minister Annie Genevard admitted that she is presently trying to convince the "maximum number of countries" to veto the agreement. The diplomatic offensive continues in Belgium, Bulgaria, Austria and Ireland.
Farmers' trade unions in the south of France have called for increased protest efforts over the next fewer weeks. FNSEA and Jeunes Agriulteurs called for "resumption of action from 15 November". The tense atmosphere is expected to prevail in the Provence-Alpes-Azur region The coast where farmers believe their situation has deteriorated dramatically. They complain that the government is not doing adequate about them and believe that a crucial part of the advancement they made at the beginning of the year was "stopped and stopped" by president Macron's dissolution of parliament.
The erstwhile government began to introduce "changes in the right direction", including fuel, micro-farms and capital gains from farm transfers. In the summer, as a consequence of the fresh elections, the current agriculture minister Annie Genevard appeared, whose farmers had to start again "re-explaining everything".
Farmers complain of rising agricultural production costs and advanced inflation, which absorbs revenue. And there were frosts and floods that reduced the yield. Consumer prices artificially kept low "under force from global markets" and European trade agreements are a problem.
Farmers were to lose 20 to 40 percent of their income. They add that a deal with the Mercosur countries will kill them. Therefore, on Tuesday, any farmers returned to the streets again, opposing imports of agricultural products from South America. Tuesday's protest in Aurillac in the south of France was the beginning of a fresh wave to spread among European farmers.
Last week, French farmers blocked the state building in the western municipality of Niort, while on Monday, a European group of Copa-Cogeca farmers sent a letter to von der Leyen calling for her to reject the Mercosur agreement and adopt a “coherent trade policy. ”
In addition to FNSEA's union headquarters, Rurale besides promised a "agricultural rebellion", which will start on 19 November in Auch and Agen, in the southwest of France. Confédération Paysanne, the 3rd largest trade union known for its anti-globalist position, is besides planning protests.
A demonstration was planned in Brussels on Wednesday. Farmers complain that the EU agreement with Mercosur will let food to be imported from Latin countries, where farmers will not gotta comply with strict EU environmental rules that European farmers must comply with.
EU negotiations on a trade agreement with the Mercosur block began on 28 June 1999. Initially, the Latin block represented Argentina, Brazil, Paraguay and Uruguay. Bolivia joined recently. In principle, 20 years later, an "ambitious, balanced and comprehensive trade agreement" was reached, as indicated by EU negotiators. However, almost 5 years later, further negotiations were suspended.
The European Union represents 450 million people and Mercosur represents over 280 million. Depending on the measure, the fresh free trade region would account for around 20 percent of global GDP. Customs duties are expected to be abolished for 93 % of products and preferential rates are to be applied for the remaining 7 %. In 2022 bilateral trade relations included exports of around EUR 63 billion from Mercosur to the European Union and somewhat below EUR 56 billion from European Union to Mercosur countries.
EU-Latin relations have complicated China's engagement in a competitive influence in Latin America.
Sources: csis.org / euractiv.com / en.mercopress.com / politico.eu
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