Mercosur: What France and Italy want to get for EU farmers
The European ministers of France and Italy have adopted a joint declaration on the Mercosur agreement. They are calling for more protection against market distortions for EU farmers.
EU member states are aiming for less rigid regulations and more negotiating flexibility for farmers within the Common EU Market Organization (CMO).
Representatives of the EU member states have reached a common position on the reform of the Common Market Organization (CMO) within the Special Committee on Agriculture (SCA). In principle, they support the European Commission's initiative. However, they do not want to frame the legal framework as tightly as the Commission does. EU Agricultural Commissioner Christophe Hansen recently proposed making the contract obligation under Article 148 mandatory across the EU. Member states, on the other hand, demand more exceptions from the proposed requirement for written delivery contracts. The obligation for written delivery contracts is particularly contentious in the dairy and sugar industries. In February, the federal states rejected it as too bureaucratic in a resolution in the Federal Council.
If the Brussels Special Committee on Agriculture has its way, member states should be able to decide for themselves whether a written contract for the delivery of agricultural products is required when the first buyer is a micro or small enterprise, delivery and payment occur simultaneously, or the value of the delivery does not exceed 20,000 euros. The EU Commission had proposed a limit of 10,000 euros.
In addition, the Council wants farmers to only receive a revision clause for rather long-term delivery contracts lasting more than twelve months. The clause should allow for a revision of contract terms or termination of the contract at any time after the twelve months if no agreement is reached. The EU Commission wanted to mandate the revision clause after six months.
The Commission's proposal also includes introducing mandatory mediation mechanisms between farmers and buyers to promote amicable solutions in contract disputes. In the SCA, it was agreed that these mechanisms should be voluntary to reduce administrative burdens and better accommodate national differences. Once the European Parliament agrees on its vision for the reform of the CMO, negotiations between the two co-legislators can commence.