South America’s agricultural sector celebrated the long-awaited Mercosur-European Union (EU) free trade agreement, which was signed after 25 years of negotiations. The deal aims to boost access to Europe’s massive market for South American farmers, who are keen to expand their exports.
However, farmers expressed concerns about the fine print of the agreement, particularly regarding environmental clauses and genetically modified seeds. The EU has imposed limits on the use of GMOs in farming, which have been common practices in South America in recent decades.
The agreement’s impact will not be immediate, with significant tariff reductions for products like oil or biodiesel expected only after seven to ten years. Argentina’s grain exporters and processors are particularly affected by European tariffs, which they believe hurt their business.
Despite these concerns, the deal is seen as a positive step for South America’s producers to stay competitive in a world where major economies are increasingly adopting protectionist policies. The agreement still faces a lengthy ratification process before it can take effect, with some EU countries opposing it, including France.
Source: https://www.reuters.com/world/south-american-farmers-hail-mercosur-eu-deal-wary-fine-print-2024-12-06