The European Commission adopted on Wednesday a trade agreement with Mercosur. It also proposed an interim arrangement to be approved by the European Parliament (PE) and EU member states. A safety brake was also announced.
The decision to adopt the final text of the agreement, which was concluded in December 2024 with Argentina, Brazil, Paraguay and Uruguay, was taken today by the College of Commissioners.
As a source from the EU told the Polish Press Agency (PAP), several commissioners, including Pole Piotr Serafin and Frenchman Stephane Séjourné, pushed for additional safety guarantees for farmers in connection with the opening of the EU market to agricultural products from Mercosur countries. As a result, the EC made a political commitment to introduce a safety brake that will allow it to react if too many sensitive agricultural products flow in from Mercosur.
“EU companies and the EU agri-food sector will immediately benefit from lower tariffs and lower costs, which will contribute to economic growth and job creation” – declared EC President Ursula von der Leyen.
The EC decision concludes a nine-month process of refining the agreement’s text in legal terms and translating it into the EU’s national languages.
On Wednesday, the College also decided on the ratification path of the agreement. Before it is ratified by the parliaments of all member states, the EC proposes an interim arrangement covering the trade part of the agreement. Its adoption will require the approval of the European Parliament and member states in the Council of the EU. The Council of the EU will decide by qualified majority, which means that 15 states representing 65% of the EU population must vote in favor.
Will the brake work?
As an EU source reported on Wednesday, the EC’s commitment regarding the safety brake will then be translated into a legal act to be adopted by the EU. It will include a mechanism for monitoring the market of the most sensitive products. Every six months, the EC will inform member states and the EP about developments in this market. If disruptions occur – it will react.
The EU source also told journalists that the EC views the mechanism as an additional insurance policy addressing concerns of some member states. However, it expects that the quotas in the agreement for importing certain agricultural products from Mercosur countries into the EU provide sufficient protection for European agriculture.
One example is beef – the tariff on 99,000 tons of this meat per year will be reduced to 7.5%. This represents 1.5% of EU beef consumption – or, as the EU official put it, two hamburgers per person. The allowed amount of poultry will account for 1.3% of annual EU consumption. “This is a very small slice of the market we are opening. Moreover, this beef will not be exempt from tariffs, only the rate on it will be reduced” – he said.
In addition, the EC will make it possible to pay potential compensations to farmers from the agricultural reserve in the next budget after 2027, which will amount to €6.3 billion.
On Wednesday, the EC also adopted a new agreement with Mexico.