On Friday, EU countries agreed to conclude an agreement with Argentina, Brazil, Paraguay and Uruguay. Those who voted against the agreement included: Poland, France and Ireland, however, failed to gather a blocking minority.
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Agreement with Mercosur. New markets for industry and pharmacy
According to prof. Kowalska the agreement may open new opportunities for selected sectors of the Polish economy. She indicated, among others: on the dynamically developing cosmetics industry, which in 2024 was responsible for approximately 4%. global cosmetics exports. They may also have a chance producers of dietary supplements and the pharmaceutical industry, whose value exceeded PLN 50 billion in 2023.
At the same time, the expert drew attention to the risks for the agricultural sector. — Due to lower costs and production standards, this poses a certain threat to EU and Polish red meat exports — she admitted, referring to competition from Mercosur countries, especially in beef production. — The Mercosur agreement may be an opportunity for some Polish entrepreneurs, but I am afraid that there are more threats to the economy – she added.
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EU agreement with Mercosur. Farmers under competitive pressure
Farmers' protests against the agreement stem from fears of an influx of cheaper food from South America. In response, the EU adopted a safeguard clause to protect the market in the event of excessive imports. Nevertheless, as assessed by prof. Kowalska, the effects of the agreement will be uneven. — The agreement poses the greatest threat to small farms, which will need more and more EU support. Large farms will probably be fine – she said.
President of the European Commission Ursula von der Leyen
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In her opinion, an opportunity for some medium-sized farms may be to switch to organic farming, promoted under the Green Deal. However, she noted that such a change is difficult, among other things. due to higher prices of organic food, limited demand and a short list of approved plant protection products.
Consumers and food security
The economist emphasized that In conditions of persistent inflation, cheaper imported food may prove attractive to consumers. In her opinion, the agreement may also strengthen EU food security. — We should take care of our self-sufficiency, the farmer, and at the same time open up to global trade – she noted, pointing to the importance of diversifying supplies in the face of climate change and increasingly frequent extreme weather phenomena.
