The European Parliament has adopted a regulation setting out how the European Union may temporarily suspend tariff preferences under the EU-Mercosur trade agreement if a surge in agricultural imports harms EU producers. The measure was approved with 483 votes in favour, 102 against, and 67 abstentions.
The new rules outline the conditions under which the European Commission can initiate an investigation into the need for safeguard measures. For sensitive agricultural products such as citrus, an investigation will be launched if imports increase by 5% on a three-year average and if, at the same time, import prices are 5% below the relevant domestic price level.
An investigation may also be requested by a member state, or by a natural or legal person representing the industry, or by an association acting on behalf of the industry, in the event of a threat of serious injury to the sector concerned.
At least once every six months, the Commission will present a report to the European Parliament assessing the impact of imports of sensitive products, including citrus.
Gabriel Mato (EPP, ES), standing rapporteur for Mercosur, stated: "The safeguards will ensure that the EU–Mercosur agreement is accompanied by a balanced and credible protection mechanism for our agricultural sector. They strengthen market monitoring, introduce clear and objective criteria to detect disruptions, and allow for faster action for sensitive products when there are indications of harm. They will provide farmers with stability and predictability, while preserving the overall balance of the agreement."
Once formally adopted by the Council, the regulation will be published in the Official Journal of the EU. It will apply once the Mercosur Interim Trade Agreement enters into force.
The bilateral safeguard clauses are to form part of both the EU-Mercosur Partnership Agreement and the EU-Mercosur Interim Trade Agreement. Both agreements still require ratification by the European Parliament. Parliament has requested an opinion from the European Court of Justice regarding compatibility with EU treaties. Until that opinion is delivered and ratification completed, Parliament cannot ratify the agreements. The European Commission may opt for provisional application of the agreement once at least one Mercosur country has completed its ratification process.
For more information:
Lieven Cosijn
European Parliament
Tel: +32 2 28 31183
Email: [email protected]
www.europarl.europa.eu
