According to Fepex, the agreement reached between the European Commission and Mercosur will practically grant free access to the fruits and vegetables from Argentina, Brazil, Uruguay, and Paraguay to the Community market, aggravating the already very unbalanced trade balance between the EU and Mercosur (given that in 2023 EU exports to Mercosur stood at 223.6 million euros while imports amounted to 959.6 million euros).
The agreed tariff dismantling for fruits and vegetables imported by the EU from Mercosur provides for the disappearance of ad valorem tariffs, i.e. a type of import tax calculated as a percentage of the value of the imported goods. These tariffs will be dismantled, depending on the products, in three phases, from the entry into force of the agreement:
The products that currently pay less than 5% tariff duties will no longer pay tariffs when the agreement enters into force.
The tariffs that now range between 5.1% and 10% will be eliminated over a transitional 4-year period, in equal tranches each year, from the entry into force of the agreement.
Product tariffs above 10.1% will be eliminated in a transitional 7-year period, in equal tranches each year, from the entry into force of the agreement.
Entry prices for imported fruits and vegetables are maintained, except for citrus fruits. However, Fepex considers that they don't effectively protect the Community market, as these prices were set in the Uruguay round of negotiations in 1994. The entry price system establishes a minimum price that imported products must maintain.
Regarding the EU's produce access to Mercosur countries, these countries currently require the negotiation of phytosanitary protocols for each type of fruit and vegetable that is to be exported from the EU, which makes access to these markets very difficult. However, it's still unknown if this obligation will be maintained after the entry into force of the agreement, announced on Friday, December 6.
According to Eurostat data processed by FEPEX, the EU exported 181,511 tons of fresh fruits and vegetables to Mercosur countries in 2023, for a value of 223,680,000 euros, while imports amounted to 775,023 tons for a value of 959,632,000 euros.
For more information: www.fepex.es