The European Union Negotiates Trade Agreements Affecting the Agri-Food Sector
The European Union is in the process of closing new trade treaties with countries outside its borders. These negotiations, which take place discreetly, have the main objective of eliminating customs duties to bring in food and agricultural products. This move worries those who produce within Europe, as they face much stricter environmental and animal welfare regulations than their external competitors. 🏛️
A Global Market with Unequal Rules
Those who cultivate and raise livestock in Europe must comply with strict legislation that increases their costs. In contrast, products arriving from other continents often follow less demanding criteria. This regulatory asymmetry puts the viability of many family farms at risk and questions the EU's capacity to self-supply basic foods. Employment in rural areas is one of the most vulnerable aspects in this scenario.
Main Differences Affecting Competition:- Production Costs: European farmers bear higher expenses for complying with animal welfare and environmental regulations.
- Quality Standards: Imports may come from production systems with less strict sanitary and labor controls.
- Final Price: Imported goods, having a lower base cost, can be sold at lower prices in the internal market.
Meanwhile, the farmer watches as tractors protest in the capitals and offices in Brussels sign papers that decide their future without stepping in the mud.
The Model that Strengthens Large International Operators
Economics experts point out that this international trade scheme disproportionately favors large-scale actors. Large agroindustrial trading companies, investment funds, and global distribution chains consolidate their role as indispensable intermediaries. For them, reducing or eliminating tariffs means expanding their profit margins, as they can acquire cheap raw materials in any world market, process them, and distribute them. The local producer, tied to their costs, sees their market position weaken. 🌍
Main Multinational Companies Benefiting from Imports (e.g., from Mercosur to the EU):- Traders and Agro-Exporters: Cargill, ADM, Bunge, Louis Dreyfus Company, COFCO International, Glencore Agriculture.