EU neighbors conclude trade agreement with Mercosur

The European Free Trade Association (EFTA) has concluded a trade agreement with the Mercosur countries in South America. The four EFTA states are thus welcoming agricultural imports, which have so far been the biggest obstacle to an EU-Mercosur agreement.

After ten years of negotiations, the EFTA (Iceland, Liechtenstein, Norway and Switzerland) concluded a trade agreement with the South American Mercosur bloc (Argentina, Brazil, Paraguay and Uruguay) on Wednesday.

The agreement provides for the elimination or reduction of tariffs on almost all trade flows, including key agricultural products such as Brazilian poultry and Argentine beef, as well as Norwegian salmon.

In a joint statement, both sides pointed to an agreement covering nearly 300 million people and 97 percent of their exports, and expressed hope of signing the agreement "in the coming months."

Meanwhile, the EU's own trade agreement with Mercosur, reached in December last year after 25 years of negotiations, is making slow progress.

The Commission was supposed to present the final legislative text last Monday, but it remains in the drawer.

The Council's Trade Policy Committee (TPC), an interface between the Commission and Member States and which includes diplomats, has removed Mercosur from the agenda for Thursday's meeting.

Instead, the committee will focus on trade relations with China and especially with the US, which is hardly surprising given the threat of tariffs from Washington, which are due to come into force after the negotiation deadline on July 9.

EU Trade Commissioner Maroš Šefčovič traveled to the US on Wednesday and Thursday for final talks with high-ranking US officials.

Worries about food

In Brussels, the uncertainty about when the text will finally be published is keeping the agricultural sector on edge.

On Wednesday, the EU agricultural lobby groups Copa and Cogeca joined forces with representatives of young and small-scale farmers and agricultural workers to once again criticize the agreement. The alliance sent a letter to EU agriculture ministers and the Parliament's International Trade (INTA) Committee, urging them not to ratify the text when the time comes.

Farmers in the EFTA countries also show little enthusiasm for the agreement. During the negotiations, agricultural associations in the EFTA member states warned that imports from Mercosur would increase their dependence, citing their long-standing struggle for greater food self-sufficiency.

Particularly in agriculture, Norway has maintained a protectionist course and remains excluded from participation in the EU internal market.

(adm, aw)