Takáč: The Mercosur Agreement Benefits the EU and Slovakia, but Farmers Have Concerns

Brussels/Bratislava – Slovakia stands to gain from the European Union’s (EU) trade agreement with the Mercosur nations but has expressed apprehensions regarding the influx of agricultural products. Minister of Agriculture Richard Takáč (Smer-SD) made this statement on Monday evening in Brussels following the EU Agriculture and Fisheries Council meeting, as reported by TASR.

During his time in Brussels, Takáč took the opportunity to engage in a bilateral meeting with officials from the European Commission’s Directorate-General for Agriculture to further discussions on potentially postponing mandatory payments from 2024 to the following year.

He cautioned that previous Slovak governments had failed to utilize funds available through project calls in the second pillar (direct payments), which puts Slovakia at risk of losing a considerable amount of allocated EU funds this year or the next.

“I am pleased that the European Commission has acknowledged that our recent actions have significantly improved our ability to draw financial resources this year compared to previous years,” he noted.

Takáč indicated that in the latter half of January 2025, his ministry will release reports detailing the actual utilization of EU funds in the agricultural sector. He admitted that achieving complete utilization of the available resources for 2024 through the EU has not been possible, prompting him to seek alternative solutions with the European Commission, such as transferring unspent funds from this year to the next. He emphasized that Slovakia is not alone in facing these challenges with the EU executive.

“This means that any funds we do not utilize this year can be carried over to the next, which the European Commission will recognize, and we will then be obligated to use these funds. We have already established mechanisms that will provide greater flexibility in this regard,” he explained.

On Monday, farmers from various EU countries protested near the European Council building in Brussels, voicing their concerns over the signing of the free trade agreement between the EU and South American Mercosur countries.

Takáč noted that Slovakia views the agreement from two perspectives. On one hand, eliminating tariffs on cars and other products will benefit the entire EU, including Slovak companies and exports. However, as the Minister of Agriculture, he has unresolved questions regarding the implications for agricultural imports from South America to the EU. “I currently lack adequate information on how these matters will be structured, including standards, limits, and other factors,” said Takáč. He mentioned that European farmers are particularly worried about the import of sugar, beef, and honey from Mercosur countries. (December 9th)