Ljubljana – The Slovenian government has endorsed the free trade agreement between the EU and the South American trade bloc Mercosur, comprising Argentina, Brazil, Uruguay, and Paraguay. The government believes the agreement, along with a proposed European regulation, includes adequate safeguards to prevent exploitation and protect farmers and economic stakeholders within the EU. However, representatives from Slovenian agriculture disagree with this stance.
The Slovenian ministries of economy and agriculture highlight that the agreement and the accompanying regulation proposed by the European Commission include various protective measures designed to prevent misuse. They assert that they have effectively addressed the concerns primarily raised by farmers.
As per the Slovenian ministries, the European Commission gave special focus to agriculture during negotiations, establishing two critical safeguards: tariff quotas for the most sensitive products and a temporary bilateral safeguard clause to address significant market imbalances. Additionally, a new financial aid scheme for producers or businesses facing crises is also a significant safeguard.
“Slovenia is confident that the Republic of Slovenia’s concerns are adequately addressed in the final text of both agreements and in the European Commission’s additional commitments regarding the most sensitive areas. Safeguards are in place for both environmental protection and agriculture, which is why the government supports the signing and conclusion of these agreements. It also advocates for the prompt implementation of both agreements,” the government stated in its official position.
In contrast, Slovenian agricultural organizations believe the agreement, despite the included safeguards, will adversely affect Slovenian and European agriculture by enabling the import of cheaper food from South America produced to lower standards than those in the EU. Hence, they oppose the agreement.
The anticipated impact of the agreement on the Slovenian economy is expected to be minimal. A study conducted by the Ministry of Economy in collaboration with the Faculty of Economics in Ljubljana indicates that the effects on Slovenia’s gross domestic product over a ten-year period may reach a maximum of 0.10 percent. (November 6 and 7)
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