site.btaBulgarian Grain Producers Warn of Risks of EU-Mercosur Trade Deal for EU Farmers' Competitiveness

The National Grain Producers Association has voiced serious concern over the possible implications of the EU–Mercosur Free Trade Agreement. Such agreements, aimed at facilitating international trade, pose serious risks to the competitiveness and sustainability of EU farmers, the organization said in a letter to the Agriculture Minister.

The EU-Mercosur deal was signed on December 6. Its aim is to promote trade by reducing tariffs, which will allow South American countries to export large quantities of beef, poultry and sugar to the EU duty-free. The agreement will create a market of over 700 million people and one of the world's largest free trade areas, including Brazil, Argentina, Paraguay and Uruguay.

The Bulgarian grain producers urged the EU and the national government to pursue a policy of protecting local agriculture, consistent with the principles of economic, social and environmental sustainability. The Association called for the negotiations on the agreement concerning agricultural products to be suspended so as to guarantee the future of EU farmers.

The different production standards, environmental and social requirements in the EU and the Mercosur countries lead to unfair competition for EU farmers. The Mercosur countries have significant competitive advantages over EU agriculture due to lower production costs - cheaper labour, lower environmental and social standards and lower land rents - which creates a risk that EU farmers will be squeezed out of the market, especially in grain production, meat and livestock farming, where competition is stiffest, the Association said. Strong imports lead to falling prices and loss of income for EU farmers. As a result, they need additional support or compensations from the EU, which has been the case in the last two years.

Such agreements also pose risks to the EU's sustainability and standards, as agricultural products from those other regions often do not meet the EU's strict environmental, welfare and social standards. Applying double standards to cheaper imports which meet lower environmental and ethical requirements compromises the efforts of EU farmers to adhere to higher standards, especially in the context of the European Green Deal, the Bulgarian grain producers said.