French supermarket chain Carrefour decided this weekend to side with French farmers in their protest against the Mercosur treaty. The company announced that it will not sell meat from South America in its French branches. In recent days, demonstrating French farmers have temporarily blocked the port of Bordeaux, among other places.
This move by Carrefour is supported by French farmers' organizations, but has also provoked a diplomatic backlash from South America. Brazilian interest groups are now calling for a boycott of Carrefour, which they accuse of protectionism and undermining trade freedom.
In Poland, dozens of farmers have expressed their dissatisfaction with the Mercosur agreement by blocking a border crossing to Ukraine for a day with tractors. The farmers are demanding that the Polish government speak out more forcefully against the agreement, which they say will have disastrous consequences for the local agricultural sector. After talks with Polish Minister of Agriculture Siekierski, it was decided to temporarily suspend the blockade until December 10.
The timing of these protests is no coincidence. The Mercosur treaty is likely to be discussed at a conference of European and South American ministers in Uruguay on December 10. There is a real chance that the treaty will be signed there, despite the ongoing resistance.
EU Agriculture Commissioner Janusz Wojciechowski says the upcoming ratification of the Mercosur agreement will bring a significant increase in agricultural imports from South America. According to him, imports of meat and agricultural products would increase by as much as €1 billion annually. This would be harmful to European farmers, who say it will undermine their market shares.
With tensions between farmers, policymakers and companies growing, the Mercosur agreement looks set to become not just an economic issue, but also a politically charged battle over trade values and production standards.