One of the demands that Spanish farmers will submit to the Minister of Agriculture, Fisheries and Food, Luis Planas, is as follows: balancing the scales of agricultural competition Between local and non-EU manufacturers. That is why the main agricultural organizations in Spain – Asaja, COAG and UPA – demand paralysis of agreement negotiations Like Mercosur, the agreement with New Zealand was not ratified and negotiations with Chile, Kenya, Mexico, India and Australia were paralyzed. They also demand increased controls at the Moroccan border to ensure that products imported from Morocco comply with the internal regulations of the European Union and the regulations contained in the free trade agreement. For the sector, this is a “vital” requirement to restore community choice and “guarantee” Member States’ food sovereignty. However, not all free trade agreements between the European Union and third countries are comparable and cannot be changed in the same way. Depending on the level of ratification of agreements, changes may be more feasible or more complex.
Mercosur, the deal that never came
It’s a never ending story. The European Union already had separate third-generation trade agreements with Argentina, Brazil, Paraguay and Uruguay, but we had to wait until 15 December 1995 to see the signing of the Framework Agreement on Interregional Cooperation between the European Union and the Southern Common Market. Although the framework agreement came into force on July 1, 1999, the implementation of the free trade zone with a population of 580 million was delayed. Twenty years laterAfter various political debates and hundreds of negotiations, both sides They signed a free trade agreement in 2019 It currently covers approximately 800 million people.
Definitely, What prevents the completion of negotiations for this agreement is the agricultural area. This includes an absolute opening up for Mercosur agri-food products, which will have to rely solely on legal guarantees to protect 357 European geographical indications, including the Spanish Jabugo ham. The European sector will benefit from the reduction of high Mercosur tariffs on chocolate and confectionery (20%), wine (27%), liquor (20% to 35%) and soft drinks (20% to 35%), and EU dairy products will be tariff-free and quota-subject. will provide access (currently at a 28% tariff, mainly on cheese). Mercosur produces 10.4% of global agri-food exports, and the European Union’s second destination (13.2%) is Spain. With 21.4% of sales to the European Union, Mercosur is the second destination for agri-food shipments.
The Spanish trade balance is in deficit: In 2022, exports totaled 63,163 tons of fruit and vegetable products, and 180,406 tons were imported. Spain is the European Union’s first producer of fruit and vegetables (25% share) and seventh worldwide, so the massive arrival of produce from the other side of the Atlantic will hurt the Spanish countryside. Farmers are not confident in the possible benefits from this agreement. According to a study conducted by the Minister of Commerce, the Spain’s exports to Mercosur will increase by 37% “once the agreement implements its full effects”, resulting in greater production (0.23% of GDP) and employment (0.11% of GDP) across the bulk of Spanish productivity (0.11%, to more than 22,000 jobs). sectors that will create equivalent).
Doesn’t convince the French either: French President Emmanuel Macron warned the European Commission about the impossibility of concluding negotiations with Mercosur as currently proposed, and the country’s Prime Minister Gabriel Attal reaffirmed his opposition. Farmers are asking the Ministry of Agriculture, Fisheries and Food to stop it, because “Spain is the ‘progressive party’ of the agreement”: “This is a very negative agreement for the Spanish agricultural sector,” explains Andoni García, executive member of COAG, of the organization’s organizing and trade union responsible for its activities.
New Zealand in the absence of approval
New Zealand is one of many free trade agreements that only need both parties to ratify for it to work 100%. Negotiations began in June 2018 and it was approved by the European Parliament on 22 November 2023, with New Zealand’s approval still pending. This is one of the agreements that Spanish farmers want to cripple and adapt to the needs of the sector. According to the European Council, the Free Trade Agreement between the EU and New Zealand (LAC) will increase bilateral trade by up to 30% and Annual exports of the European Union could reach 4.5 billion euros. The agreement includes the elimination of customs duties (currently up to 5%) on food and beverage exports.
Once again, inadequate for spain. According to the New Zealand 2022 Bilateral Report prepared by the Ministry of New Zealand, the main exports from New Zealand to Spain are mostly fruits, kiwis and dates (103.3 tonnes), molluscs (19.5 tonnes) and frozen fish (12.9 tonnes). tons) is agricultural food. Agriculture, Fisheries and Food. That year, Spain’s foreign trade data for New Zealand, Negative trade balance increasing by 7.4% in 2022. A similar situation is happening with the free trade agreement between the European Union and Canada, based on the Comprehensive Economic and Trade Agreement (CETA), which has been in temporary effect since 2016: “We want this to be paralyzed because of the impact on livestock,” says García. In this sense, farmers demand that the ministry establish an “observatory on imports” and strengthen the struggle in Brussels, demanding reciprocity “through mirror provisions” for all agricultural and livestock products entering the territory of the European Union “to prevent unfair treatment”. competition.
Non-compliant neighbor Morocco
There are other agreements that are more difficult to change because they are already in force. The EU-Morocco Euro-Mediterranean Partnership Agreement established a free trade area between the two in 2000. Morocco has a preferential agreement with the European Union Almost all products have been liberalized, except for some products subject to quotas (such as apples and sweet almonds). Import tariffs for the remaining countries are generally 40%. Due to its proximity, Spain is the country’s first trading partner in both exports and imports, with a positive trade balance for the Iberian Peninsula (14.1% of the total is Spanish).
Moroccan fruit and vegetable imports have doubled in the last decadeAccording to the data collected by the Federation of Fruit and Vegetable Producers (Fepex), it increased from 130,700 tons of vegetables to 496,000 tons between 2012-2022. Tomatoes and green beans (80,000 tons), peppers (74,000 tons), avocados (18,000 tons) and even strawberries (8,000 tons) stand out. In addition to the increase in agricultural food imports from the neighboring country, the Spanish agricultural sector demands the application of the same phytosanitary criteria, a review of compliance with European regulations on its products and a check on the tariff amounts set in the free trade agreement. They want increased controls because large European companies, and also Spanish companies, are harming local producers by producing fruits and vegetables at low cost on Moroccan territory and then selling them under another label in Spain. “We do not deny international trade, but the remaining countries must comply with certain rules,” says García.
Source: Informacion
James Sean is a writer for “Social Bites”. He covers a wide range of topics, bringing the latest news and developments to his readers. With a keen sense of what’s important and a passion for writing, James delivers unique and insightful articles that keep his readers informed and engaged.