'We cannot accept an enormous gap in standards between EU and Mercosur': COPA-COGECA's Tsiforou

European Agricultural Policy & Trade: A Discussion with Elitifuru of Copa-Cogeca

Key Concepts:

• Common Agricultural Policy (CAP): The EU’s system of agricultural subsidies and programs.
• Merosur Agreement: A trade agreement between the EU and Mercosur countries (Argentina, Brazil, Paraguay, and Uruguay).
• Copa-Cogeca: The European umbrella organization representing agricultural unions and cooperatives.
• Ring-fenced Budget: A designated portion of the EU budget specifically allocated for a particular purpose, intended to provide stability.
• Unity Safety Net/Crisis Reserve: EU funding intended to address market disturbances.
• Reciprocity (in trade): The principle that trading partners should apply equivalent standards and regulations.
• Rationalization (of CAP): Reducing the common elements of the CAP, potentially leading to individual member state policies.
• Rural Development Pillar: A component of the CAP focused on supporting rural areas and diversifying agricultural income.

I. Current Crisis in the Agricultural Sector

The European agricultural sector is currently in crisis, despite recognition from the European Commission of its strategic importance. Elitifuru, Secretary General of Copa-Cogeca, emphasizes a disconnect between rhetoric and concrete action. Farmers protested extensively in 2023 and 2024, driven by concerns over their economic viability. The core issue is a perceived lack of sufficient support from EU institutions, despite promises to improve conditions. Specifically, the proposed cuts to the Common Agricultural Policy (CAP) budget – a 20% reduction not accounting for inflation – are a major source of concern. This rationalization of the CAP risks devolving agricultural policy to 27 individual national policies, negatively impacting the internal market, food chain functionality, and rural areas.

II. Concerns Regarding the Future CAP (Post-2028)

The proposed changes to the CAP after 2028 are viewed critically. The Commission proposes a “ring-fenced budget” to ensure reliable farmer income and a doubling of the “crisis reserve” (Unity Safety Net) for market disturbances. However, Elitifuru dismisses these as insufficient. The crisis reserve only addresses market crises, offering no protection against losses due to extreme weather events, which are increasingly common. Furthermore, the proposed “competitiveness fund” excludes farmers, and the crucial “rural development pillar” of the CAP – vital for supplementing income and fostering business growth – has been eliminated. Copa-Cogeca argues that dismantling the CAP threatens food security and the future of rural areas. The EU has 9 million agricultural holdings, a significant portion being small farms (under 5 hectares), making them particularly vulnerable to these changes.

III. The Merosur Trade Agreement: A Significant Threat

The Merosur trade agreement is a major point of contention. Copa-Cogeca strongly opposes the deal, citing cumulative negative impacts from existing trade agreements with Ukraine, Indonesia, and India. Sectors already under pressure will face further challenges. A key concern is the lack of reciprocity in standards. The gap between EU standards and those applied (or not applied) in Mercosur countries is substantial and unacceptable.

While the European Parliament recently passed amendments to strengthen “mirror clauses” (safeguards), Elitifuru argues these are insufficient. These safeguards primarily address market issues and do not tackle the fundamental problem of differing standards. Reciprocity, she stresses, isn’t merely a political statement; it requires Mercosur countries to commit to equivalent standards as those in Europe. Despite potential opportunities for increased EU exports to Mercosur (e.g., poultry exports potentially rising by 39%), Copa-Cogeca views the strategic implications – the divergence of standards – as more critical. Any sector could be negatively impacted in future trade deals if the Commission doesn’t strategically assess the sector.

IV. Bureaucracy and the Sustainable Transition

Simplification of EU regulations is a stated goal, but Elitifuru argues that the bureaucratic burden on farmers is actually increasing. This burden extends beyond the CAP itself, encompassing a broad range of EU legislation that often contradicts itself or is impractical, hindering production. While the Commission has pledged simplification, the ambition is lacking. The “environment omnibus simplification proposals” offered few concrete solutions.

Regarding the sustainable transition, Elitifuru emphasizes that farmers want to address environmental concerns, but this requires economic viability. Productivity and profitability are prerequisites for achieving environmental sustainability. Blocking the economic aspect undermines the entire effort. Clear policy orientation, support, innovation, and investment are essential for a balanced economic and environmental approach.

V. Key Arguments & Perspectives

Elitifuru consistently argues that the EU Commission’s actions are undermining the strategic importance of agriculture. She frames the proposed changes as a threat to food security, rural livelihoods, and the functioning of the internal market. Her central argument is that the CAP is a cornerstone of the EU project and its dismantling will have far-reaching negative consequences. She advocates for a more holistic approach that prioritizes both economic viability and environmental sustainability for farmers.

Notable Quote:

“If we dismantle the common agricultural policy, we threaten food security, we threaten the future of rural areas.” – Elitifuru, Secretary General of Copa-Cogeca.

Conclusion:

The interview highlights a deep sense of frustration and concern within the European agricultural community. Copa-Cogeca views the proposed changes to the CAP and the Merosur trade agreement as significant threats to the sector’s viability and the broader goals of food security and rural development. The core message is a call for a more strategic and supportive approach from the EU Commission, one that recognizes the fundamental importance of agriculture and prioritizes both economic sustainability and environmental responsibility. The lack of reciprocity in trade agreements and the increasing bureaucratic burden are identified as key obstacles to a thriving agricultural sector.