Question 6499 — foreign trade

Summary

The European Union (EU) is currently negotiating a free trade agreement with Mercosur (Brazil, Argentina, Uruguay, Paraguay) with a stated objective of conclusion in 2018. The stakes are high for certain French agricultural sectors, in particular the beef sector, given the competitiveness of the Mercosur sectors. Fully aware of these sensitivities, and consistent with the objectives of the general states of food, the Government is mobilized to ensure the defense of French interests and thus guarantee the preservation of the economic dynamism of the territories. France, supported by other Member States, thus considers that the conclusion of the EU/Mercosur agreement is dependent on the balance between the opening of the market and the protection of sensitive agricultural sectors in the negotiation, in particular, beef, ethanol, sugar and poultry. Concerning beef, the EU proposed in autumn 2017 a quota of 70,000 tonnes of carcass equivalent (tec). Faced with pressure from Mercosur to raise this quota beyond 100,000 tec, France is asking that this quota be as limited as possible and not deviate significantly from 70,000 tec. In line with the actions decided within the framework of the action plan on the implementation of the economic agreement and global trade (AEGC/CETA), the Government further argues that tariff concessions on sensitive products must fall within the limits of a “global envelope”, making it possible to define what is sustainable for the sectors with regard to the market, on the scale of all current or future negotiations (Australia, New Zealand, Chile, etc.). It is also mobilizing to ensure that these price concessions are directly linked to measures to restore fair conditions of competition between French producers and those from Mercosur countries (safeguard mechanism and conditions linked to production methods). Concerning the sanitary and phytosanitary aspect, audits were carried out in Brazil by the services of the European Commission in 2017 and 2018 to assess the reliability of the certification of exports to the EU. The Government will be particularly vigilant to ensure the reliability of the Mercosur health system is guaranteed before the conclusion of the agreement, consistent with the conclusions of these audits. In any case, all meat imports from Mercosur will have to comply with EU health standards. In addition, beef from animals treated with growth hormones or any other substance not authorized in the EU as a growth promoter will remain strictly prohibited. There is still work to be done between now and the conclusion of this negotiation; Mercosur will have to demonstrate that it can offer the EU an agreement that protects its sensitivities and is synonymous with progress for offensive agricultural sectors. The Government will be attentive until the conclusion to preserve the interests of the French agricultural sectors.

Machine translation from French. The official text remains authoritative.

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