Barcelona, Spain – The European Union’s free trade agreement with the Latin American bloc Mercosur will benefit Spanish farmers while opening new opportunities among Latin American consumers, according to a senior Spanish trade official.
The key trade elements of the EU-Mercosur free trade agreement, which have proven contentious in Europe, will apply from May 1, 2026, between the 25-nation EU and the Mercosur countries that have completed their ratification procedures before the end of March.
The deal has been met with opposition in Spain and other European countries from farmers who feel they will be undercut by competition from Latin America.
Maria Naranjo Crespo, director of the agri-food industry for the Spain Exports and Investments (ICEX), the country’s trade body, said European farmers will be protected because the deal ensures all imports must meet European Union standards.
“From my point of view, the agreement between Mercosur and the EU is strong. I would say to all farmers that all products that enter the EU will have to comply with the standards of the EU. We have also established quotas in the most sensitive sectors, like in meat. For companies exporting to Latin American countries which are part of Mercosur, the deal provides extra quality tests which they must meet,” she stressed.
“Farmers should also be confident that the quality of their products in the Latin American markets controlled by Mercosur. There is a growing part of the population with higher standards of living, so that the higher standards which EU countries have will be very much appreciated,” Naranjo Crespo added.
She said EU companies would particularly benefit from exports to Brazil because of its powerful tourism trade, and Argentina, whose economy is on the rise.
“Brazilian tourism is so important in that market. And also, Argentina because the economic situation, which is much better, will be important for European companies,” she told EU Reports from Alimentaria, Europe’s third-largest trade food fair which is held annually in Barcelona.
Mercosur will remove duties on 91% of EU exports, including cars, from a current 35% over 15 years. The EU will remove duties on 92% of Mercosur exports over a period of up to 10 years.
Mercosur will also remove duties on EU agriculture-based products, such as 27% on wines and 35% on spirits.
For more sensitive farm products, the EU will offer increased quotas, including 99,000 metric tons more beef, while Mercosur will give the EU a duty-free 30,000-ton quota for cheeses.
There are also EU quotas for poultry, pork, sugar, ethanol, rice, honey, maize and sweet corn and for Mercosur on milk powders and infant formula.
Featured image: On December 5, 2024, Ursula von der Leyen, President of the European Commission, traveled to Montevideo, Uruguay
Author: Dati Bendo – European Commission
Source: Wikimedia Commons
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