Throwing a Lifejacket to the EU-Mercosur Deal: A Risky Bet for European Agriculture

Some may be rushing to save the EU-Mercosur trade deal by claiming it’s a lifeline, not only for exports of goods and services but also for the European agrifood industry. But let’s pause and ask ourselves: what’s really at stake for EU agriculture, particularly poultry producers?

Exporting Value, Importing Dependency
With the Mercosur deal, the EU seems ready to repeat the mistakes Europe made with its industrial production in the past by prioritising the export of processed agrifood products while importing raw materials, therefore trading long-term sovereignty for short-term gains. This trade-off not only disadvantages European farmers but also exposes the EU to dependency on Mercosur countries for essential agricultural goods such as sugar, beef, rice, and poultry.

The lessons from the COVID-19 pandemic appear to have been forgotten. Europe risks waking up one day to find itself reliant on Mercosur countries for critical agricultural commodities, subject to their terms and conditions, and unable to ensure the high standards our citizens expect.

The long-term cost of raw material imports under the deal simply cannot be outweighed by short-term gains from processed product exports.

The Real Cost of “Two Chicken Fillets”
It’s often been suggested that “Mercosur quotas would amount to just two chicken fillets per EU citizen per year”. But, poultry imports under the Mercosur agreement disproportionately target some of the most valuable and in-demand cuts for European consumers, such as chicken breasts. Since EU producers rely on breast meat sales to justify raising chickens, each two filets imported from abroad represent one chicken not raised in the EU.

Already, 25% of breast meat consumed in the EU comes from non-EU countries (such as Brazil, Thailand, Ukraine, and China). The import of poultry filets therefore directly undermines EU production, jeopardising the livelihoods of farmers and the sustainability of local production.

To put it in perspective: the proposed additional quota of 180,000 tons from Mercosur equates to production levels of countries like Finland, Sweden, and Denmark combined. In total, we would import 1.1 million tons of poultry meat into the EU, representing around 7-8% of the EU’s chicken production. This is a sizeable volume, and it comes at a time when trade deals are under renegotiation with Ukraine and Thailand, which are also significant poultry exporters.

Invisible Imports: What’s on Your Plate?
Consumers might not even realize the meat in their supermarket or restaurant isn’t from the EU. While fresh poultry in retail must display its origin, processed and catered products don’t. This loophole means that imported poultry often ends up in ready meals, canteens, and restaurants, precisely where demand is growing.

AVEC has long advocated for mandatory origin labeling across all poultry products to empower consumers. Until that happens, every Caesar salad or chicken sandwich might come with a hidden side of lower production standards from Brazil, Thailand, Ukraine or China.

A Question of Standards…
European farmers are rightly proud of producing under some of the world’s highest standards for animal welfare, environmental protection, and food safety. Unfortunately, Mercosur countries, including Brazil, don’t play by the same rules.

Recent audits from DG SANTE (https://ec.europa.eu/food/audits-analysis/audit-report/details/4815 + https://ec.europa.eu/food/audits-analysis/audit-report/details/4804) exposed multiple deficiencies in Brazil’s compliance with EU requirements, from food safety breaches to weak animal health practices. And this comes only a few years after Brazil’s “Carne Fraca” scandal, exposing systemic corruption in their meat industry and leading to the delisting of numerous poultry plants for EU exports.

… and Reciprocity

Although some critics argue that European farmers must do more to address environmental challenges, including emissions, deforestation and animal welfare, the reality is that they already apply the highest standards in the world.

While the EU continues to implement stricter regulations to enhance sustainability and animal welfare, these measures come at a cost, making production increasingly expensive for European farmers. Despite their commitment to upholding these standards, EU producers face growing competition from imports produced under far lower requirements.

This raises a critical question: if adhering to these exemplary standards ultimately leads to being outcompeted by less sustainable imports, what is the point of setting such benchmarks without ensuring reciprocity and fair trade conditions?

Imports produced under far lower standards not only undercut EU farmers but also endanger the very environmental goals we strive to achieve. If the EU is serious about combating global environmental challenges, it must ensure that imported products meet the same high standards expected of European farmers. Anything less undermines both the EU’s sustainability ambitions and the future of its agricultural sector.

The Bottom Line
The Mercosur agreement, often touted as a win for trade, could have devastating consequences for European food security, sustainability, and farmers. If we continue to adopt stricter EU standards while allowing imports from countries with lower ones, we’re not leading by example. We’re sabotaging our own producers. The Mercosur deal threatens to undermine the EU’s strategic autonomy and puts both farmers and consumers at risk.

Instead of throwing a lifejacket to Mercosur, let’s safeguard the future of European agriculture by demanding fair competition, stronger reciprocity in trade, and mandatory origin labeling for all poultry products.

The EU-Mercosur trade deal isn’t just a bad deal for European farmers—it’s a bad deal for Europe.