The new agreement between the EU (European Union) and the Mercosur countries – Brazil, Argentina, Uruguay and Paraguay – represents a significant blow for the European agricultural sector and, especially, for Valencian producers. Strategic crops for the Community’s economy, such as rice and citrus, now face competition from South American products, which threatens the ability of the national product to remain competitive in the market. A new market that boasts of allowing free trade in an area that includes more than 720 million consumers.
The first step in cooperation between both economic unions originates in 1999 with the Interregional Cooperation Framework Agreement. Later, on December 6, 2024, the official announcement of the closing of the agreement between the EU and MERCOSUR was made. The pact introduces a principle of commercial cooperation between both blocks and allows the reduction of tariff costs in the export and import of products, mainly agri-food.
And on January 9 of this year, the Council of the European Union gave the green light to the agreement. With the favorable vote of the majority of the member states, including Spain —except for France, Poland, Ireland, Austria, Hungary and the abstention of Belgium—, the agreement continues.
On the other hand, The MERCOSUR industrial sector promises to eliminate 90% of tariffs on EU products and with an extension of 10 years. In this way, sectors such as automobiles, chemicals, pharmaceuticals and textiles will benefit from the agreement.
Likewise, it should be noted that the agreement establishes the possibility of developing barriers to support the national product. Furthermore, the agreement emphasizes that its approval does not entail the elimination of food safety health criteria for imported products.
According to the Council of the European Union itself, these safeguard mechanisms allow tariffs to be maintained on the import of products “when they harm EU producers”, as well as the imposition of tariffs that would lower the prices of important local markets such as beef, poultry, pork, sugar, ethanol, rice, honey and corn.
The agreement boosts the automotive, chemical and textile industries
In this sense, certain sectors of the Valencian chemical industry may benefit from the agreement. At the moment, Tariffs for these products are around 18% and, with the trade deal, they would be eliminated. Paints, gases, laboratory products or, especially, plastic derivatives boast an important presence in the Valencian chemical market, especially in the province of Castellón.
For its part, automotive components produced in the municipality of Almussafes —with tariffs of between 16%— will be able to compete against the Asian market in the MERCOSUR countries.
The agreement hits Valencian agriculture squarely
In this way, Valencian farmers remain attentive to every moment of the negotiations between both blocks. They criticize that, with the introduction of foreign products, there would be a drop in the prices of local products and, consequently, a reduction in the profit margin.
Farmer organizations – such as the case of ASAJA (Agrarian Association of Young Farmers) – criticize that “it is signed without equal conditions”, since, with the agreement, the marketing of products that include substances prohibited in the EU is allowed. Furthermore, they claim that Only 0.0082% of the agri-food products imported into the European Union are controlledwhich is why they demand effective controls that demonstrate the correct effectiveness of the safeguard mechanisms.
The Valencian subsidiary —AVA-ASAJA— joins the protest: “this opening will increase the risk of introducing new pathogens that threaten to destroy our plantations.” Furthermore, the Valencian farmers association does not trust the implementation of safeguard mechanisms, especially after the increase in Ukrainian imports and the cut in the budget of the Community Agricultural Policy (CAP).
In turn, oranges are emerging as one of the most affected products. Brazil, a giant in the production of citrus juices, has the capacity to introduce up to 450,000 tons of oranges into the community market. A future scene that resembles and, at the same time, worsens the economic havoc caused by the trade agreements with Egypt and South Africa.
Likewise, Valencian rice could suffer a severe blow with the signing of the agreement. With the entry of 60,000 tons of ricethe national product would be forced to drastically reduce its prices to compete with foreign rice without tariffs.
Valencian farmers ask the Consell for an immediate response
The Valencian countryside has demanded that the Consell take concrete measures from the Generalitat that will allow the agri-food sector to be relieved of the consequences of the agreement. They demand financial aid, better control of phytosanitary status and the limitation of imported products. Meanwhile, Valencia experienced a new day of street mobilizations on Thursday, January 29, in protest against the agreement.
They criticize that even before the agreement the trade balance with the countries of South America was negative for the Valencians, with a deficit of more than 240,000 tons. Rice leads as the most affected product, followed by citrus and, in third place, livestock products.
date: 2026-02-15 06:05:00
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