The European Parliament has backed new rules allowing the EU to temporarily suspend tariff preferences for certain agricultural imports from Mercosur members Argentina, Brazil, Paraguay and Uruguay if a surge in imports harms EU producers.
The regulation was adopted by 483 votes in favour, 102 against and 67 abstentions, the parliamentary press service announced on Tuesday.
It sets out how the EU could pause tariff preferences linked to the EU-Mercosur trade deal on agricultural imports from the four Mercosur countries if imports rise sharply and cause harm to EU farmers.
Under the rules, the European Commission would launch an investigation into possible protective measures when imports of “sensitive” products rise by 5% based on a three-year average and import prices are 5% below the relevant domestic price.
Products listed as sensitive include poultry, beef, eggs, citrus and sugar.
An investigation can also be requested by an EU member state, or by an individual, company or association representing the affected industry, where there is a threat of serious injury.
How monitoring would work
The European Commission would have to report to the European Parliament at least once every six months on the impact of imports of sensitive products, according to the statement.
Gabriel Mato, the Parliament’s standing rapporteur for Mercosur, declared that the safeguards would strengthen market monitoring and allow faster action on sensitive products where there are indications of harm.
The regulation will be published in the Official Journal of the EU once it has been formally adopted by the Council, and would apply once the Mercosur Interim Trade Agreement enters into force.
The safeguard clauses are intended to form part of both the EU-Mercosur Partnership Agreement and the interim trade agreement, which still need ratification by the European Parliament.
The Parliament has asked the European Court of Justice for an opinion on whether the agreements are compatible with EU treaties, and cannot ratify them while that is pending.
