EU Tightens Trade Safeguards

In a significant move to protect its agricultural sector, the European Parliament has approved new safeguard clauses for the EU-Mercosur trade agreement. This decision was made during a plenary session and aims to shield sensitive agricultural products like beef, poultry, and citrus from potential market disruptions due to increased imports from Mercosur countries, which include Brazil, Argentina, Paraguay, and Uruguay.

The safeguard mechanism was passed with substantial support, receiving 483 votes in favor, 102 against, and 67 abstentions. It allows the EU to temporarily suspend tariff preferences if agricultural imports surge by 5% over a three-year average and fall below domestic prices by the same margin. These measures are less stringent than the originally proposed 10% annual increase by the European Commission.

Further enhancing this protective stance, the European Commission is tasked with conducting biannual market assessments and initiating investigations into import impacts upon request from member states or industry representatives. This proactive monitoring is designed to maintain stability and predictability for EU farmers, ensuring that the trade liberalization does not harm the domestic agricultural industry.

Gabriel Mato, the rapporteur for Mercosur matters, emphasized that these safeguards are crucial for preserving the integrity and balance of the EU-Mercosur agreement. The regulation is set to be formally adopted by the Council and implemented once the Mercosur Interim Trade Agreement takes effect. Meanwhile, the European Parliament continues to assess the broader implications of the EU-Mercosur agreements, pending a legal opinion from the European Court of Justice on their conformity with EU treaties.