The Seimas Committee is inclined to support the EU-Mercosur agreement. Farmers have a slightly different position
The European Affairs Committee of the Seimas urges the Government to adopt a moderate policy in formulating Lithuania's position on the free trade agreement between the European Union (EU) and the South American Customs Alliance (SACA).
„(Government – ELTA) are asked to present an updated position to the Seimas following the European Commission's assessment“, – the committee's conclusion was voiced at this week's meeting by its chairwoman, Rasa Budbergytė.
For his part, Deputy Foreign Minister Sigitas Mitkus said that the benefits of free trade with South America for the European Union (EU) far outweigh the costs, and that, in addition, he said, there are strict tariffs on "Mercosur" agricultural products.
„According to the assessments made a few years ago, the agreement is beneficial for the European Union. The difference in tariffs between „Mercosur“ countries and the EU is 5 times greater, and the agreement promises to bring benefits in terms of total quantitative benefits in the form of elimination of tariffs of up to €4 billion a year," said Mr Mitkus at the hearing of the Committee on European Affairs.
„I would like to remind you that quotas are being introduced for beef such as 99,000 tonnes, which is 1.6% of the EU's total beef production. (...) There are also quotas for poultrymeat, such as 180 thousand tonnes, which is 1.4% of the EU's poultrymeat demand," he explained.
Farmers' representatives are concerned about food quality and competition
Chamber of Agriculture (CAA) Director Sigitas Dimaitis says the farming community is wary of the agreement and fears the quality of food imported from South America will be inferior.
„EU farmers are in an unequal position, because we have certain requirements, for example with animal safety, and we don't really know what is going on over there (in South American countries – ELTA). Probably those requirements do not exist. (...) Maybe there are problems with food safety, because there are different requirements," Dimaitis said at the committee meeting.
The Director of the EAA also pointed out that imported products are cheaper and therefore compete directly with Lithuanian food products on EU-wide markets.
„We know that there can be problems with beef, poultry and eggs. We should analyse further and not rush to accept the agreement," he noted.
Eimantas Pranauskas, President of the Association of Lithuanian Agricultural Companies, added that while South American goods are competitive on the European market, this would not work if more expensive European products were exported to the countries of the „Mercosur“ alliance.
„Grains converted into value-added poultry meat will face competition from the other side, as their poultry meat is competitive, for a number of reasons. (…) So far, we don't see any benefit in terms of increasing export earnings, “, – pointed out E. Pranauskas.
„We propose to look at the likely damage in the long term, specifically in terms of sustainability and food quality. In Europe we have the highest standard of food quality, whereas South America does not," he pointed out.
ELTA recalls that in December, European Commission (EC) President Ursula von der Leyen announced that the EU and the four countries of the Mercosur alliance had signed a controversial trade agreement, which was opposed by France and many European farmers.
Ratification of the agreement would make it easier for the EU to export cars, machinery and pharmaceuticals to South America.
Brazil and its neighbours will in turn be able to sell meat, sugar, rice, honey, soybeans and other products to Europeans with fewer restrictions.
The agreement aims to eliminate most import taxes between the EU and Mercosur and create a vast free trade area covering more than 700 million consumers.
Mercosur brings together 4 South American countries - Brazil, Argentina, Paraguay and Uruguay.
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