2026-01-10 09:24
publication
2026-01-10 09:24
The agreement with the Mercosur countries is an opportunity for Polish entrepreneurs, for whom a huge sales market will open – Mateusz Michnik, an economist from the Civic Development Forum, told PAP.
European Union countries, with Poland's opposition, agreed on Friday to conclude a trade agreement with Mercosur countries, which will introduce customs preferences for certain agricultural products. In return, the markets of these countries will open to industrial goods. The decision sparked protests from farmers, including: in Warsaw, Italy and France. The final signing of the contract will probably take place in Paraguay next Monday.
According to Mateusz Michnik, economist of the Civic Development Forum, the trade agreement between the EU and Mercosur countries will benefit both EU and Polish entrepreneurs, who will be able to sell their products there. He added that the agreement could accelerate the development of European technology by increasing cooperation in the field of critical raw materials. – This is a very important step when it comes to creating a resilient and independent European economy, he said.
The expert admitted that the greatest concerns are farmers who will find it difficult to compete with much cheaper agriculture from South America. At the same time – as he noted – the agreement opens up opportunities to increase exports of processed food products, as well as savings in animal breeding thanks to lower feed prices.
He recalled that similar concerns appeared in Europe in 2016, before the signing of the trade liberalization agreement between the EU and Canada, i.e. the Comprehensive Economic and Trade Agreement (CETA). – At that time, people were afraid of the collapse of EU agriculture or the domination of Europe by Canada – said the PAP source.
He noted that, however, it turned out that these fears were not confirmed in reality: both sides benefited from the agreement, and some European industries significantly increased their exports. The data presented by Michnik shows that after five years of the CETA agreement being in force, the export of Polish milling to Canada increased by 1,065%. – An analysis of the changes that have occurred over the five years of the agreement's validity shows that the growth in exports from the EU to Canada was much faster than to other countries – he pointed out. He added that this agreement increased Europe's security and cooperation in the field of critical raw materials increased.
According to the economist, similar effects should be expected after the EU-Mercosur agreement enters into force.
The trade agreement with the Mercosur countries – Argentina, Brazil, Paraguay and Uruguay – will introduce tariff preferences for certain agricultural products, including sensitive products: beef, poultry, dairy products, sugar and ethanol. In return, the markets of these countries will open to EU industrial goods such as cars, machinery and medicines.
On Friday, a strengthened version of the protection clause was adopted in the agreement. It will be possible to exclude customs preferences for Mercosur producers if prices of sensitive products in the EU fall or if too many of these products suddenly enter the market.
Ultimately, the mechanism will be triggered when prices of sensitive products in the EU, such as beef, poultry or dairy products, fall by 5%, not by 8%. The EC's original proposal assumed activating the mechanism after exceeding the 10% threshold. (PAP)
The governments of Mercosur countries express their satisfaction with the agreement with the EU
On Friday, representatives of the governments of the South American Mercosur bloc expressed satisfaction with the EU's decision to sign the trade agreement. They saw it as an opportunity to modernize their economies, increase trade and investment, and create new jobs.
– This is a victory of dialogue, negotiations and commitment to cooperation and integration between countries and blocs of countries – said Brazilian President Luiz Inacio Lula da Silva.
The EU's consent to conclude the agreement, which has been negotiated for 25 years, is a “signal in favor of international trade” and means “a historic day for multilateralism,” said the leader of Brazil, which has the largest economy among the Mercosur countries.
In turn, Uruguay's Minister of Foreign Affairs, Mario Lubetkin, announced that for his country the signing of the agreement is an “extraordinary, fantastic scenario.”
– The Mercosur-EU agreement, once ratified by parliaments and fully implemented, will create a great economic opportunity for the region, especially for Uruguay – he said, quoted by the Uruguayan daily “El Pais”.
Argentina's foreign minister, Pablo Quirno, said that signing the agreement means “more trade, more investments and more jobs” for both European Union and Mercosur countries. “We all win,” X wrote on the platform.
“More good news,” said Argentine President Javier Milei at the end of the negotiations with the EU.
“Argentine goods will gain access to a market of over 700 million people, which constitutes 20 percent of global GDP. In this sense, the EU's abolition of tariffs on 92 percent of Argentine exports and preferential access for another 7.5 percent will drive trade, investment and job creation in our country,” wrote the Argentine Minister of Economy, Luis Caputo.
The Paraguayan authorities also expressed their satisfaction. President Santiago Pena described the agreement as a “huge opportunity” for his country, local daily El Nacional reported.
EU countries agreed on Friday, with objections from, among others, Poland, to conclude a trade agreement with Mercosur countries. The support of Italy was decisive for the agreement. Apart from Poland, France, Ireland, Hungary and Austria also voted against, and Belgium abstained.
The Argentine Minister of Foreign Affairs announced that the agreement will be signed on January 17 in Paraguay.
The trade agreement with Argentina, Brazil, Paraguay and Uruguay will introduce tariff preferences for certain agricultural products, including sensitive products: beef, poultry, dairy products, sugar and ethanol. In return, the markets of these countries will open to EU industrial goods, such as cars, machines and medicines. (PAP)
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