Seimas Committee to examine whether the EU-Mercosur agreement is beneficial for Lithuania
The European Affairs Committee (EAC) of the Seimas will discuss whether Lithuania should approve the free trade agreement signed by the Mercosur bloc with the Common Market of South America (CMUSA).
The Parliament's Committee on Rural Affairs in December proposed that the government reject the agreement when it is discussed in the EU Council and join the blocking member states, in view of Lithuanian farmers' concerns about unfair competition.
In addition, the committee suggested that the terms of the agreement should be revised to ensure fair competition and the sustainability of the agricultural sector. The Committee also made specific suggestions to the Government on how to further shape the negotiating position. These include a ban on the entry into the EU market of products containing or used in the production or cultivation of substances banned by the EU, in order to safeguard high food safety standards and ensure a fair playing field for EU farmers.
The country's farmers' organisations see a number of risks from the entry of products from the Mercosur bloc into the EU market, as well as the negative impact on Lithuania's agricultural sector, environmental objectives and food safety standards.
The EU-Mercosur agreement still needs to be approved by at least 15 of the 27 EU Member States, representing 65% of the EU population, as well as the European Parliament. Germany and Spain want the agreement to be finalised as soon as possible, while France and Poland oppose it. The Netherlands, Italy, Austria also have reservations.
The EU-Mercosur agreement aims to cut tariffs and boost trade, creating one of the world's largest free trade areas with more than 700 million people. In South America, it would include Brazil, Argentina, Paraguay and Uruguay.
The EU has been negotiating a free trade agreement with Latin American countries for more than 20 years.
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