Trade deal with Mercosur and farmers: Will the German Greens turn their backs?

Trade deal with Mercosur and farmers: Will the German Greens turn their backs?

Simon Michel-Berger, editor-in-chief of AGRARHEUTE*

© imago stock&people/imagebroker

Agriculture in the Mercosur bloc (archive): A cattle grazes on a cleared forest area in the Brazilian state of Mato Grosso.

For years, the Greens Germans opposed the trade agreement with Mercosur, with Latin American countries like Brazil. Arriving at the federal government, the tide is turning. A comment.

Formerly, theAlliance 90 – the Greens was an anti-Mercosur party. In their electoral program for the Bundestag of 2021, we can read: “ We reject agreements with a negative impact on the environment or food sovereignty, such as the EU Mercosur agreement with Latin American countries “. In a column published in the Cologne City Gazette of November 2020, Robert Habeck, Steffi Lemke and Renate Künast were even clearer: “ The European Union should in turn stop the Mercosur free trade agreement with South America as long as the destruction of the Brazilian rainforest continues or is even encouraged. »

How is the Greens’ position on Mercosur evolving?

© Sven Stolzenwald

A commentary by Mr. Simon Michel-Berger, editor-in-chief ofAGRICULTURAL TODAY.

During a visit by Federal Minister of Economics Robert Habeck and Federal Minister of Agriculture Cem Özdemir to Brazil in mid-March, the tide had already turned. The German delegation has indicated that it would gladly import hydrogen from Brazil and particularly welcomes the ban on illegal deforestation in Brazil with effect from 2030. The representatives of Brazil and Germany agree to say that the trade agreement with Mercosur must be adopted once more this year, but with additions. Mr. Habeck even spoke of a ” accord commercial amical ».

Why the Mercosur agreement will not be unraveled

The trade agreement with Mercosur has been negotiated since June 2019. The European Commission, as negotiator, has agreed with the Mercosur countries on a text which can only be modified on the legal aspects, but not on essential content. Integrating new themes into the agreement itself would mean unraveling the whole package. Given the length and difficulty of the negotiations, this will not happen – discussions on this have lasted regarding 20 years.

What can still change in the Mercosur agreement?

The association agreement between the EU and the Mercosur bloc, in which other elements such as environmental protection can be addressed, is not yet officially ready. Greenpeace published an unofficial version of the text in 2021. This text did not provide for a sanction mechanism that would apply in the event of continued environmental degradation. Such a binding mechanism currently does not exist in any bilateral trade agreement. I don’t think it can still appear in a text as fiercely negotiated as the agreement with Mercosur.

What will be the probable sequence of events?

The EU and South American countries are likely to agree on a list of non-binding declarations of intent for climate and rainforest protection. For this, a few paragraphs will be added to the association agreement in the form of an additional chapter. THE Greens will take the opportunity to consider that their concerns have been lifted and will then ratify the Mercosur agreement at Bundestag. The party proceeded in the same way for CETA, the trade agreement with Canada, which the Greens initially rejected before supporting it with a non-binding statement.

What does the Mercosur agreement mean for EU farmers?

EU farmers – with the possible exception of dairy farmers – will be the victims of the trade agreement with Mercosur. According to an official study by the European Commission, imports of poultry, beef and pork will increase considerably. It is not yet clear whether imports of dairy products from South America will increase more sharply or whether the EU will be able to export more to the Mercosur bloc. Also read: The Mercosur agreement draws near: a blow for EU cattle farmers?

So that the European market is not flooded with imports, the agreement provides for a quota system. It is not clear, however, to what extent the prices of animal products will come under pressure in our country. What is certain is that the entry into force of the agreement with Mercosur would make the situation of German breeders, already very badly treated, even more uncertain.

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* Source : Mercosur trade deal and the farmers: are the Greens falling over? | agrarheute.com