After almost a year since the trade agreement signed between Mercosur and the European Union, the Notícias Agrícolas website interviewed José Manuel Fernandes, Portuguese deputy in the European Parliament, and Antônio da Luz, chief economist at Farsul, to discuss the difficulties and perspectives of the two blocks in the face of the difficulties caused by the Covid-19 pandemic, the new coronavirus.
For Antônio da Luz, the heterogeneity of the Mercosur bloc is more complex compared to the differences in European countries. Critical of the bloc, Farsul's chief economist sees that Brazil is trapped in the South American bloc. “The rapprochement with the European Union comes to save Mercosur, but we need to be aware that trade is a two-way street. When making an agreement between commercial blocs, we have to be aware that we will have free trade zones”, he said.
One of the bottlenecks to be resolved between the two blocs is the environmental requirements in Europe that end up creating a negative view of agriculture. “Agriculture is increasingly essential, but the role of the producer is not always valued. The average income of a producer in the European Union is around 40% in relation to other professions, which makes this sector unattractive”, explained the European parliamentarian. “Viewing farmers as an enemy of the environment is very wrong, this does not mean that we do not have to emphasize the sustainability of the sector, especially with digital advances”, he added.
Despite the adversities, both Antônio da Luz and José Manuel Fernadez agree that the common values of the European and South American people will strengthen economic ties between the two blocs. “We have common values, similar cultures and way of life, these affinities will help us find a space for common good”, said Fernandez. “We have a lot to learn from cooperation between the blocs, we cannot adopt protectionist measures, on the contrary, we must buy where it is cheapest. Agribusiness only reached its current level of importance thanks to the free market”, warned Antônio da Luz.
Source: Notícias Agrícolas
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