On 8 October, the European Commission presented proposals for new safeguard clauses in connection with the planned EU-Mercosur agreement. The aim of these measures is to protect EU farmers from a disproportionate increase in agricultural imports or a sharp fall in prices as a result of the trade agreement.
Additional safety mechanisms for EU producers
The proposed safeguard clauses supplement existing guarantees contained in the draft partnership agreement with the Mercosur countries (Brazil, Argentina, Uruguay and Paraguay). The aim is to ensure that EU producers remain protected beyond the agreed import quotas.
The regulations apply in particular to sensitive agricultural products such as beef, poultry, rice, honey, eggs, garlic, ethanol and sugar. These areas are considered particularly vulnerable to market distortions caused by increased import volumes or price declines.
Market monitoring and reporting requirements
The Commission plans to monitor imports from Mercosur countries on an ongoing basis. In particular, it will analyse price developments and import volumes for sensitive products. Every six months, the European Commission will submit a report to the Council and the European Parliament on the impact of these imports on EU markets.
An investigation is initiated when certain thresholds are exceeded, for example when:
- import prices from Mercosur are at least 10% below EU prices,
- annual imports increase by more than 10%, or
- import prices fall by 10% compared to the previous year.
The risk of market damage
If an investigation finds that there is serious injury or a threat thereof, the EU may temporarily suspend tariff preferences for the products concerned.
In addition, the Commission undertakes to take immediate action at the request of a Member State if there are sufficient grounds for market disruption. In urgent cases, provisional protective measures shall be taken within 21 days of the request. The full investigation shall be completed within four months.
Source: DIHK (in German)
