The Algarve Federation of Agriculture (FEDAGRI) has spoken out against the imminent trade agreement between the European Union and Mercosur, South America’s common market bloc, arguing that it risks undermining Portuguese agriculture, and could have particularly damaging effects in economically vulnerable interior regions such as in southern Portugal.
In a statement, the regional farming body opines that the agreement, as it is currently being negotiated and politically presented, poses a threat to local farm incomes, as well as the overall survival of family-run holdings and general sustainability of rural communities. It also cautions against negative repercussions for Europe’s primary sector as a whole, not just in Portugal.
One of FEDAGRI’s central arguments concerns the lack of reciprocity in the rules governing agricultural production. The federation stresses that European farmers operate under stringent sanitary, environmental, labour, and animal welfare standards, which often comes with higher farming costs, whereas products originating in Mercosur countries are not to be subject to equivalent requirements under the proposed agreement.
According to the organisation, this imbalance creates asymmetric competition and encourages regulatory dumping, placing European producers at a clear competitive disadvantage.
In the case of the Algarve, the farmers’ federation believes that the impact of the agreement could be even more severe than elsewhere in the nation, namely due to the region’s structural constraints. These include the predominance of family farms and small and medium-sized agricultural enterprises, high operating costs, logistical limitations, water scarcity, and heightened climate vulnerability.
Under such conditions, the federation argues, ‘trade liberalisation without robust safeguards is likely to translate into shrinking profit margins for producers, the devaluation of local products and the abandonment of agricultural activity’.
FEDAGRI’s position is set within a broader wave of opposition to the EU–Mercosur agreement across several European countries. In its statement, the federation points to demonstrations and blockades by upset farmers as a warning of the risks associated with trade liberalisation in the agricultural sector, not just in Portugal, but also in other EU member states
The stance of the Portuguese government is largely believed to be at fault in this situation, exemplified in particular by the position taken by the current Minister for Agriculture, José Manuel Fernandes, who has been accused of embracing the agreement enthusiastically without first carrying out any assessment of its sectoral and territorial impact.
According to FEDAGRI, no verifiable guarantees of reciprocity have been presented, nor have there been provisions for automatic and effective safeguard mechanisms to ensure proper control of imports.
The farmers have also publicly objected to decisions of this magnitude being taken without meaningful consultation of the agricultural sector itself, and denounces the influence of concentrated interests and lobbying in the decision-making process.
The trade agreement between the European Union and the Mercosur countries is set to be signed in Paraguay next Saturday and would create one of the world’s largest free trade areas, covering more than 700 million consumers. The process continues to face opposition in several European countries, particularly from the agricultural sector, over the potential economic and social impacts of trade liberalisation.
Credit: Barlavento
