Nicosia, Cyprus. Parliament called on the Cyprus government and the European Commission to hold off on enforcing any aspect of the EU-Mercosur deal until the European Court of Justice has ruled on the matter. Lawmakers cited concerns about the agreement’s impact on the primary sector.
Resolution and concerns over consultation
In a resolution, the House plenum expressed “grave concern” about the trade deal, particularly its impact on the primary sector. It said that before the Cyprus government voted in favour at the EU Council, no adequate or substantive consultation took place with immediately affected stakeholders.
Impact on agriculture and standards
The resolution warned that the agreement could harm agricultural production and producers’ income. It also expressed “serious reservations” regarding imports of commodities “produced with non-equivalent environmental, heath-related and work-related standards”, and warned of the danger of unfair competition due to lower production costs in Mercosur countries.
Background and next steps
Mercosur is the Spanish abbreviation for the Southern Common Market, a South American trade bloc. On January 9 this year, a qualified majority of EU member states in the EU Council approved the agreement by a vote of 21 to 5, with Austria, France, Hungary, Ireland and Poland voting against it, and Belgium abstaining. A signing ceremony took place on January 17 in Paraguay. The agreement still needs to be approved by the European and Mercosur parliaments.
How should the Cyprus government respond to concerns from stakeholders in the primary sector?