“Arūnas Svitojus, the chairman of the Chamber of
Agriculture, says tough days are ahead for European agriculture due to the
trade agreement to be signed on Saturday between the EU and the South American
bloc MERCOSUR.
“These will be tough days for agriculture, because perhaps
cattle farming, poultry farming in particular, the sugar industry will suffer,
because a lot of cheap production is produced in South America. Dairy farming
(will suffer – BNS) to some extent,” A. Svitojus told LRT radio on Saturday.
The EU last week, after several decades of negotiations,
approved a huge but controversial trade agreement with MERCOSUR, despite the
resistance of European farmers and the opposition of France.
According to A. Svitojus, the agreement risks flooding
Europe with cheaper but lower-quality products.
According to him, the EU’s requirements for locally produced
products are higher, which means a higher cost price.
“We pay high taxes and make investments to protect the
climate, to preserve biodiversity, ecology and all the things that are not done
in Latin American countries, because there are no such measures, strict
standards,” said the Chairman of the Chamber of Agriculture.
“In this case, a lot of production will go to Europe, it is
not clear what its quality is, because we cannot check the laboratories. There
are many scandals there, even chemical preparations are used, that they cause
cancer. There are such doubts from both the producers and consumers,” he said.
A. Svitojus said that in December he participated in a
protest in Brussels with representatives of other EU farmers, and will do so in
the spring.
These will be difficult days for agriculture, because perhaps
cattle breeding, poultry farming in particular, and the sugar industry will
suffer, because a lot of cheap production is produced in South America.
The EU is promising compensation mechanisms for local
farmers, but according to A. Svitojus, “there is not much clarity yet.”
According to him, the winners from the agreement with
MERCOSUR will be the transport industry, especially the automotive industry, so
the winners must share the benefits with those businesses that will probably
suffer losses.
“If the (agricultural – BNS) sector suffers, it must
restructure, and if it continues to produce, (...) those unbalanced costs must
be compensated,” said A. Svitojus.
Eitvydas Bajarūnas, a representative of the Lithuanian
Confederation of Industrialists in Brussels, called for “seeing the broader
picture” and, although he acknowledged the risks of the agreement with MERCOSUR
for agriculture, stressed that the EU has provided for compensation.
“If EU production closes in on itself, we will not be able
to develop as an economy,” E. Bajarūnas told LRT radio.
“For us, the opening of any new markets is a victory,” he
added.
The EU and the Mercosur bloc will sign the agreement on
Saturday in Paraguay.
The agreement will create a huge market of more than 700 million
people, making it one of the largest free trade areas in the world.
It is part of a wider EU push to diversify trade away from
US tariffs. The deal will link the EU with Brazil, Paraguay, Argentina and
Uruguay, eliminating import tariffs on more than 90% of products.
The latest deal is said to save EU companies €4 billion in
customs duties every year."
The MERCOSUR agreement is the suicide of Western European
economies. MERCOSUR has a different nature, different people and different
opportunities. We will not compete. Our elite is fighting the USA (we are
flying into their backyard, MERCOSUR), Russia and China. It is interesting to
watch those fights, so we gape and elect the most ardent fighters. And then we
disappear like smoke. Look at how many businesses in Lithuania went bankrupt
when the Landsbergs attacked China. Those fights are not for our strength. Look
at what you are electing. What should we do to make ourselves understand?
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