Brazilian lawmakers seek safeguards in Mercosur-EU deal

On Tuesday (10), a vote on the issue was postponed to February 24 by the joint committee of Brazilian deputies and senators representing the country at the Mercosur Parliament (Parlasur). The delay gives Congress members a window to step up talks on potential protective mechanisms for Brazilian agriculture.

Senator Nelsinho Trad of the Social Democratic Party, who chairs the Senate’s Foreign Affairs Committee, and Senator Tereza Cristina of the Progressive Party, a former Agriculture Minister, are expected to meet with Vice President and Trade and Industry Minister Geraldo Alckmin on Wednesday (11) to discuss the matter.

The aim is to advance the treaty’s approval process while addressing concerns raised by Brazil’s agricultural sector.

As part of this push, lawmakers have already engaged in talks with the Ministry of Agriculture and Livestock and officials from the Ministry of Development, Industry, Trade and Services (Mdic).

Last week, Luis Rua, the secretary for trade and international relations at the Agriculture Ministry, met with representatives from export sectors covered by the agreement to assess the situation.

Slower approval

Meanwhile, members of the Congressional Agricultural Caucus (FPA) are calling for a slower approval process to allow further negotiations around possible protections.

“There’s been pushback, especially from agribusiness, on several points in the agreement. Since [the committee] has thoroughly reviewed the issues, we thought it best to hold this meeting to resolve certain conflicts. We could propose compensatory measures by the government, because we can’t change the agreement anymore,” Trad said.

On the same day, the European Union approved internal safeguards to protect its own producers from Brazilian imports that might threaten domestic sales of EU-origin goods.

European Union Ambassador to Brazil Marian Schuegraf informed lawmakers of the decision, which they welcomed as a positive development and a potential sign of easing tensions in the European Parliament.

Brazilian legislators are waiting for European political tensions to cool before launching a formal diplomatic mission to promote the deal in Europe.

“In the short term, these safeguards are very weak for agribusiness. Limiting them to a 5% increase in price or volume of imports into Europe makes the deal unattractive for the meat and sugar sectors and for all the products we already export. Beyond that limit, tariffs not covered by the agreement would return—those that are now set to zero. But I think Brazil will show we have a truly sustainable agriculture sector,” said Senator Tereza Cristina during the session.

The executive branch holds a different view. Some officials believe the approval of domestic protectionist measures could send the wrong message to the European Union and harm Brazil’s future negotiating power.

Also during Tuesday’s joint committee session, the rapporteur for the matter, Congressman Arlindo Chinaglia of the Workers’ Party, presented his report and accepted the request to postpone the vote. Chinaglia supports ratifying the deal signed by the two blocs on January 17.