Deforestation in the Amazon rainforest has put the landmark European Union-Mercosur trade agreement in jeopardy, according to German Chancellor Angela Merkel.
The trade deal, which was approved in principle last year, is in the process of undergoing legal revision in the E.U. Then it must be approved and ratified by each of the 27 member states.
A spokesman for the chancellor said that the leader of the E.U.’s largest economy has been left with serious doubts about the viability of the deal after meeting with environmental activists.
“The chancellor’s position is that… there are significant doubts as to whether the agreement can be implemented in its intended spirit, considering the current developments and the terrible loss of forests taking place there [in Brazil],” Steffen Seibert said.
See Also:Trade NewsThe meeting coincided with an announcement from Brazil’s National Institute for Space Research (INPE), which said that the rate of deforestation in the Amazon had increased by more than a third since August 2019.
Overall, the organization estimates that deforestation has increased by 30 percent since the election of the conservative president Jair Bolsonaro in 2018.
If passed, the trade agreement would remove tax barriers and increase quotas on 90 percent of goods traded among the E.U. and the four members of the Mercosur – Argentina, Brazil, Paraguay and Uruguay.
Olive oil producers and exporters on both sides of the Atlantic eagerly awaited the full ratification of the deal when it was announced last year. However, the certainty of the deal being approved by all 27 E.U. member states has diminished considerably since.
Environmental activists have warned that eliminating tariffs on Brazilian beef and soybeans would serve as renewed incentive for farmers and ranchers to continue clearing land in the Amazon, which is frequently done through controlled burns.
Merkel is not the first E.U. leader to cast doubt on the deal. French President Emmanuel Macron previously questioned the viability of the deal after thousands of wildfires burned across the Amazon last year.
Argentina’s new president, Alberto Fernández, has also signaled that implementing the deal his predecessor fought so hard to pass is not at the top of his administration’s list of priorities.
Last year’s announcement that an agreement had been reached between the two trading blocs was a historic moment and came after 20 years of negotiations. The ratification of the deal would create a combined market of 780 million people.
In spite of some opposition from member states, the European Commission remains steadfast in its commitment to ratifying and implementing the deal.
“The agreement represents a win-win for both the E.U. and Mercosur, creating opportunities for growth, jobs and sustainable development on both sides,” the Commission said.
Related Articles
Apr. 9, 2024
Tunisian Ag Minister Urges Sector to Take Advantage of Bumper Harvest
Olive oil production rebounded in the 2023/24 crop year. Abdelmonem Belati believes the sector must work together to export extra virgin olive oil quickly.
Dec. 18, 2023
Tunisia Takes Measures to Lower Olive Oil Prices at Home as Export Revenues Fall
Low fixed prices for Tunisian bulk exports to Europe mean Tunisian farmers are not benefiting from the surge in global olive oil prices.
Dec. 18, 2023
Reflections on 45 Years Championing Italian Olive Oil in America
Nearly half of a century after a chance encounter with an Italian olive oil producer, John J. Profaci looks back on his role in the American market.
Sep. 5, 2024
Bringing Peloponnesian Flavors to American Kitchens
The producer behind Kosterina believes there is a place in the American kitchen for Koroneiki olive oil produced in its place of origin and traditionally cured Greek olives.
Nov. 7, 2024
Meet the Retailers Working to Grow Oleotourism Sales After the Vacation Ends
Alicia and Vijay Shroff, co-owners of an olive oil specialty store, have launched a project to deepen the connection between oleotourism operators and visitors.
Jun. 5, 2024
Pompeian VP Says Baltimore Bridge Disaster Cost Company Millions
While the company was able to receive its most recent shipment of European olive oil through the port, the measures taken after the disaster were unsustainable in the long run.
Dec. 5, 2023
EU Project Aims to Level the Playing Field with Processed Foods
The MedDiet4All project promotes the benefits of a Mediterranean diet and communicates the adverse health effects of ultra-processed foods.
Apr. 10, 2024
Farmers Protest European Agricultural Policies in Madrid
The protestors demand exceptions for European environmental regulations that they argue make their products less competitive on the global market.