Bilateral safeguard clause of the EU-Mercosur Partnership Agreement and the EU-Mercosur Interim Trade Agreement for agricultural products

The European Parliament adopted by 483 votes to 102, with 67 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council implementing the bilateral safeguard clause of the EU-Mercosur Partnership Agreement and the EU-Mercosur Interim Trade Agreement for agricultural products.

The proposed regulation sets out how the EU could temporarily suspend tariff preferences envisaged in the EU-Mercosur trade deal on agricultural imports from the Mercosur countries (Argentina, Brazil, Paraguay, and Uruguay), if a surge in these imports harms EU producers.

Parliament adopted its position at first reading by amending the Commission's proposal.

Investigations into serious harm

According to the amended text, the Commission should launch an investigation into the need for protection measures when imports of sensitive agricultural products, including poultry, beef, eggs, citrus and sugar, increase by 5% on a three year average (below the 10% per year proposed by the Commission) and if, at the same time, import prices are 5% below the relevant domestic price.

An investigation should be initiated by the Commission at the request of a Member State, of any natural or legal person that is acting on behalf of the Union industry, or of any association not having legal personality that is acting on behalf of the Union industry, where there is sufficient prima facie evidence of serious injury or the threat of serious injury to the Union industry.

The Commission should not be limited to the quantitative thresholds set out in this Regulation when establishing prima facie evidence of serious injury. Clear indications of a deterioration in the economic situation of the industry, across the Union or at Member State level, including sustained decreases in domestic prices, may be sufficient to demonstrate prima facie evidence of serious injury and may warrant the initiation of an investigation.

Where possible, the investigation should be concluded within six months and four months for sensitive products from the date on which the notice of initiation is published in the Official Journal of the European Union.

In the case of sensitive products, provisional safeguard measures should be adopted without delay and in any event within a maximum of 21 days from the initiation of the investigation.

Anti-circumvention measures

If the Commission identifies circumvention of safeguard measures through changes in trade routes, including imports from Parties exempted from the safeguard measures provided for in this Regulation, it should inform the competent authorities of the Member States in order to strengthen customs cooperation with Mercosur countries in verifying compliance with the rules of origin provided for in the EU-Mercosur Partnership Agreement and in the Interim Trade Agreement and ensuring full compliance with those rules.

Monitoring

The Commission should constantly and proactively monitor imports of any sensitive products from the date of entry into force of the EU-Mercosur Partnership Agreement and in the Interim Trade Agreement. Monitoring should be extended to other products or sectors if the relevant Union industry makes a duly justified request to the Commission. The Commission should present a monitoring report at least every six months, containing its assessment of the impact of imports of sensitive products benefitting from preferential market access under the Agreements, including data on import volumes and prices for all sensitive products.