Mercosur splits the economy: farmers rejoice, industry disappointed and furious

Brussels – The EU-Mercosur trade agreement is dividing the European economic world. The vote in the European Parliament, which refers the free trade text to the Court of Justice of the EU, not only marks a division between parties and parliamentary groups, but also reveals a rift between the primary and secondary sectors: while the agricultural world rejoices, industry criticises the Chamber. 

“We are shocked by the collective lack of responsibility,” criticises Markus J. Beyrer, Director General of BusinessEurope, the association of European industrial federations. The agreement between the European Union and the Mercosur countries (Argentina, Brazil, Paraguay, and Uruguay) is a “landmark agreement, which is crucial for the European Union’s position in the world,” he emphasises. For this reason, BusinessEurope is “deeply concerned about the consequences of yet another delay to an agreement of such economic and geopolitical decisiveness.” Just as an example, “between 2021 and 2025, the EU is estimated to have lost 183 billion euros in exports and 291 billion euros in GDP as a result of the agreement not being implemented.”

The European Chambers of Commerce also expressed strong disappointment. “The signing of the
EU-Mercosur agreement last weekend raised hopes of more predictable international
trading conditions,” said the president of Eurochambres, Vladimír Dlouhý, disappointed and concerned about the EU’s change of heart. Hence, the call for EU “policy makers” to “pursue new trade agreements,” starting with the one with South American countries. 

Silence from the automotive world. Acea, the European Automobile Manufacturers’ Association, has not issued any statements or comments, but the message sent out at the signing last weekend was clear: “We cannot afford to wait any longer“, the organisation had announced, in a clear call for ratification as soon as possible. The Parliament’s vote can only be met with disappointment. 

Farmers, on the other hand, are rejoicing. “The decisive vote by MEPs validates the legitimate concerns and mobilisation of the EU farming community,” said Copa and Cogeca, the main European trade unions in the sector. In Italy, Coldiretti, Cia, and Confagricoltura are united and aligned in celebrating the European Parliament’s vote.