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Agricultural Parliamentary Front Demands Decree With Safeguards in the Mercosur Agreement and Warns of Risks in Agricultural Exports.
The federal government is discussing with representatives of the rural sector the issuance of a decree to create agro safeguards within the Mercosur Agreement with the European Union.
The goal is to protect Brazilian agricultural exports from potential European restrictions.
The articulation involves the Agricultural Parliamentary Front, the rapporteur of the agreement, and Vice President Geraldo Alckmin.
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The pressure is occurring in Brasília, where the sector fears that the text may be voted on without defense mechanisms equivalent to those adopted by Europe.
Although agribusiness supports the treaty, parliamentarians and producers advocate for rules that preserve Brazilian competitiveness.
Agricultural Parliamentary Front Calls for Speed in Agro Safeguards
On the occasion, the group requested agility in publishing the decree.
According to the president of the agrarian caucus, Deputy Pedro Lupion, the absence of agro safeguards could leave Brazil at a disadvantage.
He warned that the approval of the agreement by another country in the bloc could automatically activate European rules.
“What concerns us is that any parliament approving, as is the case with Argentina – which has already approved it in the Chamber and now must go to the Senate –, the European Union may apply.
And if there is no type of safeguard, exceeding 5% they can open an investigation,” he stated.
European Union Tightens Rules and Raises Concerns About Agricultural Exports
Thus, apprehension has increased after the European Parliament reduced the limit for the growth of sensitive agricultural imports from 10% to 5%.
In practice, this means that Brazilian products with strong growth may be targeted by barriers.
Therefore, the sector believes that the Mercosur Agreement needs to come with protection instruments.
Agro Products May Be Directly Impacted
Among the most sensitive items are corn, beef, and sugar.
According to Lupion, the recent growth in exports of these products far exceeds the new European limit.
“Setting a 5% growth limit on Brazilian agribusiness exports creates a very clear impediment,” he said.
Thus, beef at 75%; sugar at 73%.
In a free trade agreement, one side cannot gain while the other loses.”
Mercosur Agreement Vote May Occur This Week
The president of the Chamber indicated that he intends to schedule the treaty for a vote by Thursday.
Thus, before that, Marcos Pereira and Geraldo Alckmin are expected to meet to discuss the decree on agro safeguards, responding to the request of the Agricultural Parliamentary Front.
The rapporteur has already indicated that the text of the agreement cannot be altered by the Legislative.
“The parliament either ratifies or does not ratify,” he stated.
Still, he intends to present recommendations developed in dialogue with productive sectors.
Agro Safeguards Are Seen as a Condition for Support of the Agreement
Despite criticisms, agribusiness remains favorable to the Mercosur Agreement with the European Union.
Thus, the understanding is that the treaty expands markets and reduces tariffs, which tends to benefit agricultural exports in the long run.
So without this instrument, the sector fears that Europe may have stricter defense mechanisms than those available to Brazil.
Next Steps in Congress and in Government
Thus, the expectation is that the decree will be sent to the Civil House in the coming days.
At the same time, Congress is expected to advance in analyzing the agreement.
If the safeguards are formalized before the vote, the tendency is for greater support from agribusiness.
Otherwise, parliamentarians linked to the sector may push for a delay.
Thus, the outcome of the Mercosur Agreement will depend not only on the vote but also on the government’s ability to meet the demands for protection of Brazilian agricultural exports.
See more at: Agribusiness Presses for Decree to Protect Sector Before Voting on Mercosur-EU Agreement
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