Nicosia, Cyprus. Cyprus did not carry out an impact study before agreeing to the European Union’s trade deal with Mercosur signed last weekend, Trade Minister Michael Damianos told parliament on Tuesday. He said the EU has conducted studies and Cyprus’ data set is small.
Minister’s comments to parliamentary committee
Damianos told the House agriculture committee that the EU itself “has conducted studies”, but that for Cyprus “the data set is small, and the impact does not seem to be great”. He later said that “the EU has the data for Cyprus and says how it will be affected”.
Lawmakers raise concerns over assessment and impact
Ecologists’ Movement MP Charalambos Theopemptou disputed the approach, saying countries including Ireland, Belgium, the Netherlands, France and Austria had carried out their own impact studies, while other countries were preparing one.
Committee chairman and Akel MP Yiannakis Gavriel said that in previous committee meetings on the deal, “a common finding of everyone except the executive branch [was] that this agreement, for the state of Cyprus, is, if not disastrous, to the detriment of the primary sector”.
Gavriel asked why Cyprus voted in favour, saying the island “does not export heavy industrial products” and noting that halloumi’s protected designation of origin (PDO) status was not referenced in the deal’s text.
Government view on strategic value and safeguards
Damianos said the agreement is “strategic” for the EU and “broadens the horizons of Cypriot businesses in a large market”. He said Cypriot consumers would benefit from reduced-tariff imports, while shipping, pharmaceutical and agricultural sectors would benefit from exports.
He said most imports from Mercosur countries relate to soybean oil, concentrated juice, coffee and animal feed, and that lower tariffs would benefit consumers. Damianos added that trade between Cyprus and Mercosur states is “very limited”, and that if the market is disrupted there are economic and trade safeguard clauses that can act quickly.
Gavriel again asked about an impact study, and Damianos said, “Impact studies are not conducted for such agreements. The EU has conducted studies.”
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