{"id":61124,"date":"2018-01-30T11:20:25","date_gmt":"2018-01-30T11:20:25","guid":{"rendered":"http:\/\/www.bnreport.com\/eu-races-against-the-clock-to-seal-beef-for-cars-trade-deal\/"},"modified":"2018-01-30T11:20:25","modified_gmt":"2018-01-30T11:20:25","slug":"eu-races-against-the-clock-to-seal-beef-for-cars-trade-deal","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/eu-races-against-the-clock-to-seal-beef-for-cars-trade-deal\/","title":{"rendered":"EU races against the clock to seal beef-for-cars trade deal"},"content":{"rendered":"

It\u2019s crunch time for the EU to strike what would be its biggest trade deal \u2014 an accord with the Mercosur bloc in South America that has eluded it for the past 20 years.<\/p>\n

Brazil\u2019s election campaign kicks off at the beginning of March, which means European Commisioner for Trade Cecilia Malmstr\u00f6m now faces a very narrow time window<\/a> in which to lock down a political accord with the Mercosur countries of Argentina, Brazil, Uruguay and Paraguay. Trade diplomats argue that negotiations next Tuesday (and possibly Wednesday)<\/a> in Brussels will be decisive to closing out a deal.<\/p>\n

Malmstr\u00f6m won huge kudos over her first years as commissioner for securing big deals with Vietnam, Canada and Japan, but she is now in danger of losing a race against the clock to sign with Mercosur. The stakes are high as the Swedish commissioner has described the deal as having \u201cthree times the value\u201d of the pact with Tokyo.<\/p>\n

\u201cThe window will be closing soon because Brazil is closing down, basically, for the elections,\u201d Malmstr\u00f6m told reporters on the sidelines of the World Economic Forum in Davos. \u201cIf we lose this momentum we are in for many, many years [of further negotiations],\u201d she added.<\/p>\n

\n

\u201cCan you believe that such a big, large agreement fails because of some beef?\u201d \u2014 Ivan Scalfarotto, state secretary at the Italian economy ministry<\/em><\/p>\n<\/blockquote>\n

After Brazil\u2019s election in October, the EU will move into its own election in 2019, when it will choose its new commissioners and parliamentarians.<\/p>\n

Next week, Malmstr\u00f6m will join Commissioner for Agriculture Phil Hogan in meeting with the Argentine, Brazilian, Paraguayan and Uruguayan foreign ministers. Malmstr\u00f6m said those talks should \u201cgive political direction to our negotiating teams \u2026 then [we] leave them for a couple of weeks and hopefully we can conclude this very soon.\u201d In another attempt to reconcile outstanding differences, French President Emmanuel Macron is also set to meet his Argentine counterpart Mauricio Macri on Friday.<\/p>\n

All about the beef<\/h3>\n

At its heart, any agreement will depend on beef and ethanol \u2014 but mainly the beef. If Europe agrees to buy enough prime Latin American beef at low tariff levels, Mercosur will drop tariffs on leading EU exports such as cars and machinery.<\/p>\n

Countries such as Ireland and France have traditionally been hostile toward the deal over fears that their beef sectors could be overwhelmed by South American rivals, but Spain, Italy and Germany have all insisted that Europe\u2019s biggest export interests cannot be held hostage by farmers.<\/p>\n

\u201cCan you believe that such a big, large agreement fails because of some beef?\u201d Ivan Scalfarotto, state secretary at the Italian economy ministry, told POLITICO last month.<\/p>\n

In a sign of the urgency, signals are now emerging that the EU is ready to move on how much beef it is willing to buy with reduced tariffs. The original offer of only 70,000 metric tons caused outrage in Mercosur, which had been looking for more than 200,000 tons worth of access. EU diplomats say discussions are now focusing on an offer of 90,000 tons to 100,000 tons. The big question is whether that is enough for the big ranchers of the Pampas.<\/p>\n

Speaking at a debate on Mercosur in the European Parliament last week, EU chief negotiator Sandra Gallina said that both sides had made good progress on technical issues, such as standards for animal health and regulations, but that it was now up to the higher political echelons to clear the remaining roadblocks.<\/p>\n

\u201cI\u2019m in need of big political help if this is to finish,\u201d said Gallina, adding that leaders will otherwise need to explain \u201cwhy we don\u2019t want to finish this \u2026 geopolitically very important\u201d agreement.<\/p>\n

French come round<\/h3>\n

After long shying from upping its beef offer, the European Commission sent a letter to Mercosur in December in which it promised to open up further if the South Americans fulfilled four conditions in return: better market access for cars and dairy, the inclusion of maritime services, more favorable requirements on rules of origin and the access to public procurement at the sub-federal level. The protection of food names like Rioja wine or Roquefort cheese is also high on the EU\u2019s priority list.<\/p>\n

It\u2019s far from certain, however, that the planned exchange of offers will satisfy both sides.<\/p>\n

<\/p>\n

European Commissioner for Trade Cecilia Malmstrom | Cesar Leimgruber\/AFP via Getty Images<\/p>\n

\u201cI have serious doubts whether we can accept such an offer\u201d of 90,000 tons of beef, said a Mercosur official, adding that it would be even below the 100,000 tons that Brussels was ready to offer back in 2004, when talks had last come close to a conclusion. \u201cIf we were to accept such a low number, it would certainly mean that the EU gets less in return,\u201d the official said.<\/p>\n

EU diplomats said the Commission was still internally debating whether to present a higher offer, with Commissioner for Trade Malmstr\u00f6m pushing for 100,000 tons, while Hogan, an Irishman known for his tough line in agricultural negotiations, was fighting to keep the number lower.<\/p>\n

While France originally joined Ireland as a leading critic of a Mercosur deal, Paris has struck a more conciliatory tone recently<\/a>, recognizing that the EU will need to offer more beef if it wants to conclude an agreement that would be highly lucrative for French manufacturing industries, EU diplomats said.<\/p>\n

\n

\u201cEverybody knows that if we don\u2019t conclude this agreement rapidly, its entry into force will be put back \u2018until the Greek calends'\u201d \u2014 Jos\u00e9 Ignacio Salafranca, EP rapporteur on deal<\/em><\/p>\n<\/blockquote>\n

A key demand from Paris, two EU officials close to the talks said, is to get assurances from Brussels \u2014 either in form of a safeguard clause on beef or additional farm subsidies for the beef sector. If that happens, France could be able to throw its weight behind the Mercosur deal before time runs out.<\/p>\n

Jos\u00e9 Ignacio Salafranca, the European Parliament\u2019s rapporteur on the deal, warned this week that it might never happen. \u201cEverybody knows that if we don\u2019t conclude this agreement rapidly, its entry into force will be put back \u2018until the Greek calends,'\u201d he told lawmakers.<\/p>\n

Original Article<\/a><\/p>\n

[contf] [contfnew] <\/p>\n

<\/a><\/h5>\n","protected":false},"excerpt":{"rendered":"

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