Honourable Chairman,
Honourable Members of the European Parliament,
Ladies and gentlemen.
I wish you all the best for the New Year. This year is crucial for the agenda this Committee oversees.
At my confirmation hearing, I promised to discuss the EU-Mercosur Partnership Agreement with you once negotiations were finalized. These talks ended in December. The agreement opens up new export chances for EU companies and strengthens our economic security by developing resilient value chains in key sectors like raw materials. I assure you, the deal reached is better than the one in 2019.
Trade agreements arent just about economics; they build communities of shared values. The EU-Mercosur bond is one of the strongest globally, founded on trust and shared heritage.
In a confrontational world, we must show that like-minded partners can achieve meaningful results together. The EU-Mercosur Partnership Agreement exemplifies this, showing that openness and cooperation lead to progress and prosperity.
This agreement creates a market of over 700 million consumers and makes the EU Mercosurs top source of Foreign Direct Investment, enhancing our ability to tap into growth and access inputs needed for green and digital transitions.
It boosts our resilience against economic disruptions by diversifying supply chains. The agreement supports our policies to de-risk via trade diversification and ensures industrial competitiveness.
As you analyze the details, remember the geopolitical significance and potential of this deal to meet our broader objectives.
Now, the tangible economic benefits:
- Boosts competitiveness for EU businesses: Reduced Mercosur tariffs significantly enhance EU companies competitiveness, saving over 4 billion euros in customs duties annually.
- Simplifies customs procedures, easing trade flows for EU exporters, crucial for 26,000 EU SMEs exporting to Mercosur.
- Opens public procurement opportunities: EU firms can access Mercosur public contracts on equal terms with domestic companies.
- Secures access to key raw materials and green goods, supporting the EUs green transition commitments.
- Bolsters economic security and supply chain resilience, ensuring critical imports for European industries.
The agreement balances market access in agricultural products, improving access for EU agri-food products in a market of 280 million consumers.
The Partnership Agreement eliminates or reduces high tariffs for key EU agri-food exports and provides zero-duty TRQs for several dairy products.
349 EU Geographical Indications are protected, making it the most comprehensive agreement for protecting European food and drinks.
Clear and well-calibrated tariff quotas protect sectors like beef, poultry, sugar, and ethanol, balancing offensive and defensive interests in agri-food trade.
The Commission carefully negotiated limits for Mercosur market openings, considering impacts from other FTAs.
On beef, the market opening is within reasonable limits, with a quota of 99,000 tons phased in over seven years.
On poultry, a duty-free quota of 180,000 tons is opened for Mercosur, aligning with annual EU consumption growth.
Safeguards protect the agricultural sector from import increases causing serious injury, allowing temporary withdrawal of tariff preferences.
A new fund provides a safety net for farmers, ensuring no negative repercussions from the agreement.
Compliance with EU SPS standards is mandatory for imports from Mercosur or any third country, with regular audits ensuring adherence.
The Agreement supports sustainability goals, with commitments to the Paris Agreement and deforestation measures.
Following legal scrubbing, the text will be translated and submitted for EU ratification procedures. This marks the start of a political discussion on the agreements opportunities.
Thank you.