Sánchez clashes with Macron and Planas with the Spanish camp over the agreement between the European Union and Mercosur

The French president strives to get a blocking minority to overthrow the agreement with Mercosur when the capitals vote on it. “France will continue, with its partners, to tirelessly defend its agriculture and its food sovereignty. These agricultural demands are already widely expressed in Europe: in Poland, in Italy, in the Netherlands, in Austria, in Belgium and also in the European Parliament,” say sources from the Elysee Palace.

At the opposite end of the quadrilateral, “Spain will work so that this agreement is approved by a majority in the Council. Because trade opening with our brother Latin American countries will make us – all of us – more prosperous and stronger,” he replied. Pedro Sanchez from your X social network account.

The President of the Government has been one of those who has put the most pressure on Von der Leyen to promote this agreement. In September, it signed a letter with 10 other countries demanding that it conclude before the end of the year. In reality, their objective was to close it under the Spanish presidency of the EU in the second half of 2023, but Macron frustrated their attempt. His main ally has been Olaf Sholz: “This agreement will create a free market for more than 700 million people, as well as greater growth and competitiveness,” says the German chancellor.

In contrast, The French president called Von der Leyen by phone when he found out this Thursday that he was traveling to the Mercosur summit in Montevideo (a trip carried out with the utmost secrecy) to beg him, without success, to stop the agreement. “France’s demands are known and shared in Europe: the agricultural sector cannot be exposed to unfair competition or constitute an adjustment variable,” argues the Elysée. The president ended up canceling her visit this Saturday to the reopening of the Notre Dame cathedral in Paris.

Although Sánchez and Macron are on diametrically opposed sides in this debate, the farmers of Spain and France do agree in their rejection of the free trade agreement with Mercosur, and announce mobilizations for next Monday in Brussels. They complain that they will have to compete with a avalanche of cheap Latin American imports in disadvantaged conditionssince they must meet much more demanding environmental and food safety standards.

“We also have to export: we have to export wine, oil, meat. The problem is that The requirements that are required of me to produce are much more restrictive. than those that they demand from these countries,” denounced the president of Asaja, Pedro Barato.

“The Spanish Government is one of the promoters of this agreement and the Ministry of Agriculture It uses us again as currency for other activities such as car sales, construction or energy. We are once again the biggest losers,” says the general secretary of COAG, Miguel Padilla. COAG estimates the impact on livestock farming of the pact with Mercosur at 3,000 million, and warns of damage in other sectors such as citrus fruits, honey or pork.

“The use (in Mercosur) of products that are not allowed in the EU for the fattening of animals and phytosanitary in agriculture represents unfair competition that ruins farmers and ranchers,” Padilla denounced.

The Minister of Agriculture, Luis Planas, responds that “Mercosur is a great economic opportunity for the agricultural sector.” “Spain wins with him. Our agri-food sector will be strengthened of this opening to a continent with which we are united by ties of culture and language,” says Planas. Among the benefiting sectors would be wine (which currently suffers a tariff of 27%) or olive oil (10%).

Furthermore, the pact guarantees the protection in Mercosur of 357 Geographical Indications of foods and beverages of the EUof which 59 are Spanish. Among them, saffron from La Mancha, cecina from León, ham from Jabugo, citrus fruits from Valencia, nougat from Jijona, olive oil from Antequera, cheese from Mahón, wines from Jerez, Rioja, Ribera del Duero, Priorat, Somontano or Bierzo or the pacharán of Navarra.

“To our farmers: we have heard you, we have addressed your concerns and we are acting accordingly. This agreement includes strong safeguards to protect your livelihoods“Von der Leyen said during her press appearance in Montevideo.

However, both Von der Leyen and the Spanish Government have placed emphasis on the geopolitical dimension of the agreement. “This is magnificent news. It constitutes the most important achievement of the foreign trade policy of Spain and the EU in recent years. It marks a before and after, by reinforcing the strategic alliance between two very important areas, the EU and Mercosur. For our country it also acquires special relevance, since we are a bridge between the EU and Latin America,” celebrated the Minister of Economy, Carlos Body.

Meloni has the key

If all obstacles are overcome, the EU-Mercosur agreement will create a market of more than 700 million people, which Von der Leyen says constitutes “the largest trade and investment partnership the world has ever seen.” According to Brussels calculations, the pact It will save community companies 4 billion euros a year in tariffs. EU companies – among them 30,000 SMEs – exported 56 billion euros in goods to Mercosur countries in 2023 and 28 billion euros in services in 2022, according to data from Brussels.

Under the agreement, Mercosur countries will eliminate tariffs on 91% of goods imported from Europe, among which are key industrial export products for the EU, such as cars (which now suffer a 35% surcharge) and the machinery (up to 20%).

In turn, the EU will liberalize 95% of imports of goods from Mercosur, including 82% of agricultural goods. However, in the case of the most sensitive agricultural products for Europeans – such as beef and pork, chicken, sugar, rice or honey– a system of limited quotas has been established.

In any case, the agreement reached by Von der Leyen with Mercosur is still hanging by a thread, since it still needs ratification from both the capitals and the European Parliament. In the confrontation between Macron and Sánchez, the key lies with the Italian Prime Minister, Giorgia Meloniwhich has expressed doubts about the pact but has not yet adopted a definitive position. If in the end he chooses the side of Spain, the free trade pact will go ahead; But if Meloni allies himself with Macron he would add the blocking minority necessary to overthrow Mercosur.