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Division over Mercosur continues to grow
The discussion about the Mercosur trade agreement continues to grow. The reason is the deforestation in the Amazon, while Brazil speaks of unwillingness on the EU side. The growing resistance is a boost for European farmers who are collectively calling for rejection of the deal.
The free trade agreement between the European Union and the South American countries of Brazil, Argentina, Paraguay and Uruguay is increasingly criticized. The agreement, signed more than a year ago was closed, is now awaiting ratification from all 27 EU Member States. But it is far from obvious that that official ratification will come. More and more European countries are turning against Mercosur. Even Germany, until recently the leader of the Mercosur deal, moved recently towards the enemy's camp.
Deforestation through beef production
The resistance against Mercosur comes from France, among others. That was confirmed again last Friday by the government in the country. A new report presented to the French Prime Minister that day shows the disastrous consequences of the expansion of beef production in the Mercosur region. This would accelerate deforestation by at least 25% per year.
This would be an annual deforestation with an area almost as large as the Netherlands. The extra acreage required for the cultivation of fodder crops and the expansion of sugar cane production have not yet been included. The report concludes that the climate costs outweigh the economic benefits of the Mercosur deal.
New deal requirements
France believes that the agreement with the Mercosur countries can only be continued if certain requirements are met. One of these is respecting the goals of the Paris international agreement to combat global warming. Politicians take a similar view in Austria, Germany, the Netherlands, Wallonia, Ireland and Luxembourg, among others.
European farmers will feel supported by this growing political resistance. At the end of last week they brought a joint point of view outside urging the EU to reject the trade agreement. The deal would increase imports of, among other things, beef and pork, sugar and soy. Some dairy products would also become part of the free trade agreement, while all these markets are already under great pressure
'Demise of farmers'
'Farmers in Europe face major challenges to produce in a climate- and animal-friendly manner, which entails higher costs. Rising and cheap imports from the Mercosur countries are leading to increasing price pressure. These trade policies and unequal standards are accelerating the demise of farmers on both sides of the Atlantic."
The declaration was signed by 43 farmers' organizations from 14 countries: Austria, Belgium, Croatia, Denmark, France, Germany, Italy, Lithuania, Luxembourg, Netherlands, Norway, Portugal, Spain and Switzerland. From the Netherlands, the position has been endorsed by Agractie, the Dutch Dairymen Board, the Dutch Arable Farming Union, the Dutch Dairy Farmers' Union and Future Farmers.
Brazil reacts defensively
Brazil rejects the EU's criticism as an unwillingness to finalize the trade deal. The French report on the consequences for deforestation is portrayed as protectionism, a means of protecting one's own market. According to the Minister of Foreign Affairs and Agriculture, Brazil has already shown in the past that it is able to increase production of beef, soy and maize while reducing deforestation. "Between 2004 and 2012, deforestation in the Amazon decreased by 83%, while agricultural production grew 61%." According to the country, that historical should be leading.
Jeanette Pennings
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