EU-Mercosur Trade Agreement Approved: Mixed Impacts on Spain’s Agro-Food Sector
The EU-Mercosur trade deal brings new opportunities and challenges for Spain’s agro-food sector amid tariff eliminations and competitive pressures.
- • The EU-Mercosur agreement passed with a qualified majority despite some opposition.
- • Spain exports €463 million to Mercosur but imports exceed €4.1 billion, reflecting a trade deficit.
- • Tariffs on Spanish agro-food exports such as olive oil and wine will be gradually eliminated over up to ten years.
- • Agricultural safeguards protect sensitive products like citrus and beef, addressing sector concerns.
- • The food processing industry sees the agreement as an opportunity despite competitive pressures in the primary sector.
Key details
The recently approved EU-Mercosur trade agreement marks a pivotal moment for Spain’s economic relations with Latin America, particularly influencing its agro-food industry. Despite initial resistance from several EU members, the agreement passed with a qualified majority, aiming to enhance commercial ties and open market opportunities.
Spain currently runs a significant trade deficit with Mercosur countries, exporting approximately €463 million in agro-food products while importing over €4.1 billion. The agreement’s gradual elimination of tariffs, which currently range from 10% to 35% on key Spanish exports such as olive oil, wine, and processed foods, is expected to provide a competitive boost to these sectors. However, the liberalization timeline spans up to ten years, delaying immediate economic benefits and requiring strategic planning from Spanish companies.
Concerns have been raised within Spain’s primary agricultural sector about increased competition, especially in beef, poultry, and other sensitive products from South American producers. While the Spanish government highlights the benefits of secured raw materials like soy for livestock and meat production, many agricultural organizations remain skeptical. The agreement includes reinforced agricultural safeguards allowing rapid EU intervention in case of market disturbances, particularly protecting sensitive products like citrus fruits.
The food processing industry in Spain views the agreement positively, anticipating growth and expanded market access. Overall, the agreement reflects a strategic move to strengthen Spain's economic ties with Latin America but presents a complex challenge balancing openness with protecting vulnerable domestic sectors.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.
