Commission juggles Mercosur deal, anti-deforestation rules, and farmers’ anger
EU trade enthusiasts may be disheartened to see trade lumped into the already extensive portfolio of Slovakia’s nominee, Maroš Šefčovič — the EU’s “Mr Fix-it” and one of its longest-serving commissioners.
Šefčovič, who led the EU’s Brexit negotiations, has been chosen by Commission President Ursula von der Leyen as commissioner for trade, economic security, interinstitutional relations, and transparency—quite a mouthful.
With such a broad mandate, international business risks being sidelined, further signalling the decline of the EU’s free-trade frenzy from previous decades.
This might be welcome news for many in the EU’s agricultural sector. Farmers have long complained that non-EU food imports can create unfair competition.
At least in agriculture, political discussions are already focusing more on reciprocity in import standards, than on adding new countries to the EU’s list of trade partners.
The latest example came earlier this week, when the European Parliament rejected a European Commission proposal to lower the permitted residues on food for a group of pesticides banned in the EU, as they would not have been reduced to zero on imported products.
Although the Commission’s proposal was in some ways an improvement on the status quo, an overwhelming majority of members of the European Parliament (MEPs), backed the principle of reciprocity in production standards for health and competitiveness reasons.
EU farmers, however, might not be pleased to learn that one of Šefčovič’s tasks is to “finalise trade agreements under negotiation,” particularly with Latin American and Indo-Pacific countries—hinting at deals with Mercosur, Australia, and India.
The Commission is eager to push through the EU-Mercosur agreement, potentially the EU’s largest free trade deal, with hopes pinned on the G20 summit in Brazil on 18 November.
Yet, agricultural groups and some EU countries, notably France, are expected to oppose its approval, while the Spanish and German governments continue to cheer on.
Brazil, in turn, is pushing the EU to delay its new anti-deforestation regulation (EUDR) —which targets imports like coffee, cocoa, livestock, and soy—to finalise the Mercosur trade deal.
Brazilian officials worry that the law could limit their agricultural exports to the EU and are seeking compensation if it is enforced, according to Reuters.
Ironically, those in the EU calling for delays to the EUDR’s enforcement, such as politicians and farming organisations, are not asking for “reciprocity.” Why? The regulation does not only affect non-EU countries like Brazil — it also applies to European farmers and companies producing or sourcing soy and livestock in the EU.
As Euractiv reported today, von der Leyen is considering a solution to avoid enforcing the rules next December, driven by pressure from both, EU trade partners and the bloc’s own farmers.
This solution could be key to addressing concerns from members of the European Parliament (MEPs) and stakeholders, while potentially clearing the path for the long-awaited Mercosur trade deal.
Should it succeed, it would mark a historic victory for the Commission, concluding a trade agreement that’s been nearly 25 years in the making.
Nibbles of the week
Luxembourg’s Hansen was chosen as EU farming chief, Hungary’s Várhelyi to keep food safety. Von der Leyen announced on Tuesday (17 September) that Luxembourg’s Christophe Hansen was her choice to oversee the agriculture and food security portfolio for the 2024-2029 mandate, pending confirmation by the European Parliament. Meanwhile, food safety will remain under the scope of the health commissioner, who could be Hungary’s nominee Olivér Várhelyi.
According to von der Leyen’s plan, the farming portfolio will fall under the umbrella of the executive vice president for cohesion and reforms, a role assigned to Italy’s Raffaele Fitto.
Bluetongue virus reaches Sweden, and Norway amid a surge of outbreaks. After spreading rapidly across central Europe over the last few months, several cases of bluetongue virus (BTV) have been reported in Sweden and Norway, the first instances that far north in over a decade.
Parliament urges an end to tolerance for pesticide residues in imported food. Members of the European Parliament (MEPs) on Wednesday (13 September) rejected two European Commission proposals to adjust limits for residues of some EU-banned chemicals in food, reinforcing their commitment to a zero-tolerance policy for imported products.
EU and China hold talks amid trade row. After meeting his Chinese counterpart Want Wentao in Brussels on Thursday (19 September), the EU trade chief Valdis Dombrovskis said that Beijing’s anti-dumping and anti-subsidy probes into EU imports of brandy, pork, and dairy were “unwarranted […], based on questionable allegations, and lack sufficient evidence”.
Bulgaria steps up pressure to stop egg imports from Kyiv. The Bulgarian delegation will present a note to the AGRIFISH Council next Monday (23 September) asking the Commission to ban the import of Ukrainian eggs into the country. Diplomatic sources confirmed to Euractiv that the Bulgarian government sent an official written request to the EU executive at the end of August, asking for further action
The Netherlands wants to overturn the EU ban on electric pulse fishing. In its plan for agriculture and fisheries, the Dutch government said it would seek support among member states to reauthorise the practice, which has been banned in the bloc since m.2021 and faces stiff opposition from France and Belgium in particular.
NGOs and fishermen call for clearer labelling rules for canned fish. European NGO Oceana and fishermen’s organisation Europêche said processed seafood products should carry the same labelling as fresh fish to combat illegal practices and ensure fair competition.