At the EU-Latin America-Caribbean summit, which will take place in Brussels on July 17th and 18th, a possible conclusion of the agreement will be discussed. Specifically, it is about the controversial EU-Mercosur trade pact. Greenpeace and more than 50 other environmental and human rights organizations demonstrated on Monday in front of the doors of the EU Parliament against the conclusion of the EU-Mercosur agreement. They brought down a ten-foot Jenga tower as a symbol of the agreement’s devastating impact on the environment, human rights, workers and smallholder agriculture.
Largest free trade zone in the world
Negotiations with the Mercosur economic area, consisting of Brazil, Argentina, Paraguay and Uruguay, have been going on since 1999. The EU Commission has been trying for years to facilitate a compromise. She repeatedly points out that the agreement could save companies in the EU billions in tariffs and boost exports.
In the summer of 2019, after many years of negotiations, a basic political agreement was reached on the establishment of a free trade area between the EU and the Mercosur countries. The negotiated draft contract failed at the beginning of 2020 due to Austria’s rejection. After much back and forth, however, it should soon come to a signing. In 2023, this could create the largest free trade zone in the world with over 720 million inhabitants.
“An agreement at EU-Mercosur would be fatal”
Critics fear that European farmers will be forced into a price war while at the same time increasing the destruction of the rainforest in South America. For this reason, Greenpeace and more than 50 other environmental and human rights organizations protested together on Monday against the signing of the treaty. They brought down a 3-meter high Jenga tower as a symbol of the agreement’s devastating impact on the environment, human rights, workers and smallholder agriculture.
Greenpeace called on Austrian Chancellor Karl Nehammer, who is also taking part in the summit, to clearly reject the agreement: “An agreement at EU-Mercosur would be fatal. The agreement exploits the environment, ignores human rights and puts domestic agriculture under massive pressure. Chancellor Nehammer must do everything in his power to stop this catastrophe pact,” said Melanie Ebner, spokeswoman for agriculture at Greenpeace in Austria.
Leak shows: No sanctions for environmental violations
Important: At the summit, the hitherto missing additional protocol for the protection of the environment, climate and human rights within the framework of the EU-Mercosur agreement is to be agreed. However, the devil is in the details: A leaked package insert has already shown that environmental violations would not result in any sanctions.
Summary of the criticism
Rainforest destruction for easier export of agricultural products: The EU-Mercosur trade agreement is primarily criticized by climate protectors because it would have negative effects on the climate and the environment. A major reason for this is the deforestation of the Amazon rainforest. Brazil already has a high rate of deforestation, which the trade deal could exacerbate. The treaty would facilitate the export of agricultural products such as soybeans and beef, which could lead to further expansion of agriculture in the region. Large parts of the rainforest are already being cleared and other ecosystems destroyed to make room for cattle pastures and crops. Greepeace says: “With the agreement, the EU wants to make the export of these products even more attractive by offering a quota (so-called quotas) that can be imported duty-free or with reduced tariffs – e.g. 99,000 tons of beef or 650,000 tons of bioethanol (from sugar cane). According to experts, the 99,000 tons of duty-free beef alone mean at least 5% additional forest destruction in the Mercosur region every year.”
Increase in carbon footprint: The agreement, which promotes trade in products such as beef, agricultural products such as soy, pesticides and internal combustion engines, also comes with high CO2 emissions and environmental degradation. This represents a hurdle for the energy transition. In addition, the long transport route leads to increased CO2 emissions. Therefore, this agreement is not conducive to good cooperation in the development of green value chains.
Human rights and quality of life at risk: In addition to environmental concerns, there are also concerns about social and human rights standards in some Mercosur countries. Critics argue that the trade deal could encourage economic development and the export of products from countries where there are violations of labor rights, land rights conflicts and the rights of indigenous peoples.
Despite everything, agreement by the end of the year?
Difficult negotiations are also pending today, on the second day. At the beginning of the summit, EU foreign policy chief Josep Borrel said it was very unlikely that there would be a major breakthrough. Still, he added: “But I expect the will to be expressed to continue working hard to reach an agreement by the end of the year.”
Brazilian President Luiz Inácio Lula da Silva and the current Spanish EU Council Presidency also expressed the hope on Monday of being able to conclude an agreement in the next six months.
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