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Main features of the EU-Mercosur trade agreement for the agri-food sector

Posted by minteclimited on Jul 26, 2019 11:47:52 AM

 

The agreement will remove the majority of tariffs on EU exports to Mercosur, making EU companies more competitive by saving them €4 billion worth of duties per year.

The EU agri-food sector will benefit from slashing existing Mercosur high tariffs on EU export products:

  • Chocolates and confectionery (20%),
  • Wines (27%),
  • Spirits (20 to 35%),
  • Soft drinks (20 to 35%)

The agreement will also provide duty-free access subject to quotas for EU dairy products (currently 28% tariff), notably for cheeses.

Product

Current

New Import volume

Tariff

Beef

200,000 tonnes p.a.

99,000 tonnes p.a. (55% fresh, 45% frozen)

7.5%

Poultry

+400,000 tonnes p.a.

180,000 tonnes p.a.

Duty free

Sugar

EU has been largest net exporter

 

180,000 tonnes p.a. for refining

 

10,000 tonnes p.a. for Paraguay only

Duty free. No new sugar quote will be created for Brazil.

 

Paraguay duty free

Ethanol

 

New 45,000 tonnes p.a. for the chemical industry

 

200,000 tonnes p.a.

 

Duty-free

 

(in-quota rate of 1/3 of the current high duty (up to €19/hectolitre) will be opened for all other uses).

Honey

35,000 tonnes p.a.

45,000 tonnes p.a.

Duty-free (gradual duty reduction over a 5-year period).

Rice

100,000 tonnes p.a.

60,000 tonnes p.a.

Duty-free free (gradual duty reduction over a 5-year period)

 

BETTER EXPORT OPPORTUNITIES FOR EUROPEAN FARMERS AND FOOD PRODUCERS

The agreement presents a balanced outcome that creates new opportunities for European farmers and food producers, while at the same time mitigates possible market pressure. European farmers and food businesses will gain unprecedented access to the countries of Mercosur, which represent a large market of 260 million people. This will be achieved by:

  • removing high tariffs for main EU export products
  • preventing imitation of EU traditional foodstuffs
  • making food safety procedures clearer, more predictable and less cumbersome for EU exporters

 

Topics: commodities

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