The European Commission has proposed a regulation to strengthen protections for EU farmers in the context of the EU-Mercosur Partnership Agreement (EMPA). The safeguards build on guarantees provided under the EMPA legal proposal sent to EU Member States on 3 September. They are designed to provide certainty to EU farmers beyond the phased quotas agreed with Mercosur for imports in sensitive sectors. In the event of an unforeseen surge in imports from Mercosur or a decrease in prices for EU producers, safeguard measures would apply.
The proposal establishes procedures to ensure the timely and effective implementation of bilateral safeguard measures for agricultural products. It also includes provisions for sensitive agricultural products listed in the Annex, including beef, poultry, rice, honey, eggs, garlic, ethanol, and sugar.
© European Commission
Enhanced monitoring
The Commission will systematically monitor market trends regarding imports of sensitive agricultural products. Based on this monitoring, it will provide a report to the Council and the European Parliament every six months on the impacts of these imports on EU markets. Reports will cover the EU market as a whole and, where relevant, the specific situation in individual Member States.
Clear triggers
The Commission will prioritize cases of import surges or price decreases concentrated in one or more Member States. As a general rule, the Commission will launch an investigation if import prices from Mercosur are at least 10 percent lower than prices of the same or competing EU products and there is either a more than 10 percent increase in annual imports of a product from Mercosur under preferential terms or a 10 percent decrease in import prices compared to the preceding year. If the investigation confirms serious injury or the threat of injury, the EU could temporarily withdraw tariff preferences on the products concerned.
Rapid response
The proposal commits the Commission to initiate an investigation without delay when requested by a Member State and when sufficient grounds exist. In urgent cases, it will activate provisional safeguard measures within 21 days after receiving the request if there is a sufficient risk of harm. The Commission also commits to concluding investigations within four months, which is shorter than the 12 months otherwise allowed by the EMPA.
Background
The bilateral safeguard clauses in the EMPA allow temporary withdrawal of tariff preferences to address possible negative impacts of tariff reductions. The proposal translates this safeguard clause into binding and enforceable EU law.
Next steps
The proposed regulation must be adopted by the European Parliament and the Council under the ordinary legislative procedure.
For more information:
Olof GILL
European Commission
Tel: +32 2 29 65966
Email: [email protected]
www.ec.europa.eu
