Moreover, the Mercosur countries allegedly do not comply with European environmental standards for agriculture and livestock farming, argue both agricultural organizations and environmental groups. A recent EU study reveals ongoing problems for Brazil in meeting European food safety standards, particularly concerning adherence to bans on certain hormones.
Access to the European market for products that do not meet EU standards would, according to them, be a disservice to both EU producers and consumers.
It appears that a final agreement on the ratification of the Mercosur treaty could be reached next week (November 18 and 19) at the G20 summit in Brazil. The disadvantages for European farmers and livestock breeders could possibly be compensated through the establishment of an EU damage compensation fund.
The German Minister of Economic Affairs, Robert Habeck, meanwhile warns of a similar situation in a trade agreement with India. Habeck recently—during a trade visit to New Delhi—called the agricultural chapter the biggest stumbling block and advocated for agriculture to be excluded from the treaty.
According to Habeck, opening the Indian market to EU free trade could have drastic consequences for the Indian economy since 60% of the Indian population (even 80% in some regions) works in the agricultural sector.
A free trade agreement, which the EU and India have been negotiating for decades, could therefore—according to Habeck—initially be limited to the industrial sector. Habeck warned that an agreement with India without protection for European farmers could lead to increased competition.