On May 1, significantly more beef from Mercosur countries will enter the European Union than Brussels had previously indicated. The figure involves tens of thousands of tons. Additionally, Brussels has handed control over the export quota allocation mechanism to South American countries, meaning they will decide which companies – and to what extent – can supply beef to the EU market.
As of May 1, provisions of the EU-Mercosur agreement come into force. Under the arrangements, from that date it will be possible to import products such as beef, poultry, dairy, sugar, and ethanol into the EU at tariff rates more favorable to South American producers. These reductions were supposed to apply only to specific quantities of each product defined in the agreement. In return, Mercosur countries were to lower tariffs – often considered prohibitive – on European industrial goods, including cars.
As reported by rmf24.pl, the European Commission has failed to keep its word. From May 1, significantly more duty-free beef is set to enter the EU than previously announced. Initially, Brussels claimed that 99,000 tons of beef from Mercosur countries would enter the EU. EU bureaucrats also stated that the introduction of South American beef would be gradual, spread over six years. These assurances were intended to calm farmers, who feared that a large influx of beef in a short time would threaten European production.
58,000 tons of beef to enter the EU
However, it turns out that the European Commission’s recent promises do not reflect reality. As early as May 1, it will be possible to import 58,000 tons of High Quality Beef into the EU. Additionally, under the agreement, meat that was previously subject to a 20-percent tariff will now be exempt. As a result, beef from Mercosur countries will immediately become significantly cheaper. This will hit beef producers in Poland and other EU countries, who will be forced to lower their prices. According to information from the French daily “Le Point”, these harmful changes were introduced quietly just a few days ago. The document modifying the rules for meat imports from Mercosur countries was reportedly adopted on April 22 this year.
Abandoning control over the quota system
Another major controversy concerns the European Commission’s decision to relinquish control over the quota management system. Standard trade agreements signed by the EU usually ensure that it retains the right to decide who is allowed to import goods. However, the EU-Mercosur agreement includes a provision transferring this competence to South American countries. This means they will independently determine which companies can sell their products to the EU and in what quantities.
“Instead of free competition, a system has been created in which Brazil will be able to allocate most quotas to its giant company – JBS, which could take control over nearly the entire import market in the EU, setting prices at will,” said Jacek Zarzecki from the Polish Platform for Sustainable Beef in an interview with rmf24.pl.
The partnership agreement between EU representatives and Mercosur countries was signed on January 17 this year. Approval was granted on January 9 by a majority of the Council of the EU, despite opposition from Poland, France, Ireland, Hungary, and Austria. The agreement must still be ratified by all EU member states.
At the end of January, the European Parliament referred the agreement to the Court of Justice of the European Union (CJEU) to assess its compliance with EU treaties. In mid-March, the Polish Sejm adopted a resolution calling on the government to file a complaint with the CJEU on Poland’s behalf, independently of the European Parliament’s case. In early April, President Karol Nawrocki sent a letter to Prime Minister Donald Tusk demanding the immediate referral of the EU-Mercosur agreement to the CJEU.