EU Proposes Swift Safeguards for Farmers Amid Mercosur Trade Deal Concerns

The European Commission has proposed new rules to protect European Union farmers as part of the EU-Mercosur Association Agreement. The proposal introduces safeguards that would allow the EU to quickly suspend tariff preferences for sensitive agricultural products if imports from Mercosur countries exceed agreed limits or if prices fall by more than 10 percent. The measures are designed to address concerns among European farmers about increased competition from South American producers, especially in sectors such as wine, beef, poultry, rice, honey, eggs, garlic, ethanol, and sugar.

The Commission’s proposal was sent to EU member states on September 3. It aims to provide an extra layer of security for EU farmers beyond the gradual introduction of import quotas that were negotiated with Mercosur. These quotas were intended to limit the impact of increased imports on sensitive sectors. However, the new safeguards would allow for a faster response if there is an unexpected and harmful surge in imports or a sharp drop in prices that could threaten the livelihoods of EU producers.

Under the proposed regulation, the Commission would systematically monitor market trends for sensitive agricultural products covered by the agreement. This monitoring would include regular analysis of import volumes and price developments. Every six months, the Commission would report to the Council and the European Parliament on the impact of Mercosur imports on EU markets. These reports would cover the entire EU market and, when necessary, focus on specific member states that may be particularly affected.

The regulation sets out clear triggers for action. The Commission would prioritize cases where there is a significant increase in imports or a notable drop in domestic prices in one or more member states. An investigation would generally be launched if import prices from Mercosur are at least 10 percent lower than those of comparable EU products or competitors, and if either annual imports of a product from Mercosur rise by more than 10 percent under preferential conditions, or import prices for that product fall by 10 percent compared to the previous year.

If an investigation finds serious harm or a threat of harm to EU producers, the Commission could temporarily withdraw tariff preferences for the products causing the problem. The proposal also commits the Commission to act quickly. Investigations must begin without delay when requested by a member state with sufficient evidence. In urgent cases, provisional safeguard measures could be activated within 21 days of receiving a request if there is enough risk of harm. The goal is to complete investigations within four months, much faster than the twelve months allowed under the broader agreement.

The safeguards are intended to reassure European farmers who have expressed concerns about the potential impact of the EU-Mercosur deal. The agreement, which has been under negotiation for years, aims to boost trade between the EU and Mercosur countries—Argentina, Brazil, Paraguay, and Uruguay—by reducing tariffs and opening markets. However, agricultural groups in Europe have warned that increased imports from South America could undermine local production standards and threaten rural economies.

The Commission’s proposal will now be reviewed by EU member states and the European Parliament. If approved, it will become part of the legal framework governing trade between the EU and Mercosur. The Commission says these measures are necessary to ensure that European farmers are not left vulnerable to sudden market shocks as trade with Mercosur expands. The safeguards are seen as a way to balance the benefits of increased trade with the need to protect sensitive sectors within the EU’s agricultural industry.