Maltese farmers are sounding the alarm over the potential implications of the EU’s new trade deal with a bloc of South American countries.
The EU’s recent deal with Mercosur members Argentina, Brazil, Paraguay and Uruguay, which followed 25 years of negotiations, has proven contentious among European farmers, who are concerned the market could end up flooded with cheap South American commodities.
Malcolm Borg, President of the Għaqda Bdiewa Attivi NGO, told WhosWho.mt that Maltese farmers share similar concerns and are seeking clarifications from the government.
“There is always a big question mark when it comes to free trade agreements that the EU signs, especially because agriculture has been used as a sacrificial lamb in all discussions the EU holds,” Mr Borg said.
“It generally accepts agricultural produce from countries that have more resources than European farmers in terms of land, lower costs of production, and lower regulations and restrictions, so there is always a lot of mistrust from European farmers when it comes to these free trade deals.”
"We hope that the questions farmers have on how this will impact us directly are clarified.”
Mr Borg acknowledged that the Mercosur deal might benefit the European continent as a whole by slashing duties on cars and other EU exports.
He also said European consumers might be attracted by cheaper South American produce.
However, he argued that the issue isn’t just about prices but about fairness and double standards.
“The EU is very strict with its farmers but it accepts lower-quality produce from these countries,” he said.
“Unfortunately, Malta, which is dominated by family-run and small-scale farms, is impacted adversely by these trade agreements because we don’t export any food items and we have to accept these imported products.”
He said that while the Mercosur agreement attempts to bridge the gap between South American and European standards, the cost of production remains much higher in Europe.
“If Brazilian producers are paid very low salaries and European producers have to pay higher salaries, there is nothing much you can do – the cost of production for a Brazilian potato remains much cheaper than a Maltese or Dutch potato,” he said.
"At the end of the day, consumers might find cheaper bananas but the story is much more complicated.”
Earlier today, the EP voted to seek an opinion from the EU Court of Justice before voting on the deal, a move that could delay the agreement’s implementation by up to two years.
German MEP Bernd Lange, who chairs the EP’s international trade committee, condemned the vote as “absolutely irresponsible”, stating that the EP is using delaying tactics under the guise of legal review.
