Ljubljana – The Slovenian government has supported the free trade agreement between the EU and the South American trade bloc Mercosur, which consists of Argentina, Brazil, Uruguay, and Paraguay. The government sees sufficient safeguards in the agreement and the accompanying proposal for a European regulation that will prevent abuses and protect farmers and other economic actors in the EU. Representatives of Slovenian agriculture disagree with this.
As emphasized by the Slovenian ministries of economy and agriculture, the agreement and the accompanying regulation proposed by the European Commission contain several protective mechanisms that will prevent abuses. They are convinced that they have adequately responded to the concerns expressed primarily by farmers.
According to Slovenian competent ministries, the European Commission paid special attention to agriculture during the negotiations and negotiated two essential safeguards. These are tariff quotas for the most sensitive products and a temporary bilateral safeguard clause in the event of significant market imbalances. An important safeguard is also the new financial aid scheme for producers or companies in crisis situations.
“Slovenia believes that the concerns of the Republic of Slovenia in the final text of both agreements and the additional commitments of the European Commission are adequately addressed in the most sensitive areas. Safeguards are provided both in the field of environmental protection and in agriculture, which is why the government supports their signing and conclusion. It also advocates for the earliest possible start of the implementation of both agreements,” the government stated in its adopted position.
Slovenian agricultural organizations disagree with this. They argue that the agreement, despite the built-in safeguards, will harm Slovenian and European agriculture, as it will allow the import of cheaper food from South America, produced under lower standards than in the EU. Therefore, they oppose the agreement.
The effects of the agreement on the Slovenian economy are expected to be limited. As shown by a study prepared by the Ministry of Economy in collaboration with the Faculty of Economics in Ljubljana, the effects on Slovenian gross domestic product over a ten-year period will reach up to 0.10 percent. (November 6 and 7)
