Strengthening trade relations with Ukraine and Mercosur countries (Argentina, Brazil, Paraguay, Uruguay) could become a strategic move for the EU in case of a trade war with the United States.
This was stated by European Commissioner for Agriculture, Christos Hansen, as reported by Euronews.
According to Christos Hansen, boosting cooperation with Ukraine and Latin American partners will help the EU reduce dependence on U.S. imports, particularly protein crops. Despite concerns among European farmers about competition, the commissioner notes that such agreements will make the EU agricultural sector more competitive.
The first step will be concluding a new trade agreement with Ukraine, replacing the current Autonomous Trade Measures (ATM) regime, which temporarily removed all tariffs and quotas on Ukrainian agricultural exports after Russia's invasion in 2022. The existing scheme runs until June 2025 and must be replaced with a full free trade agreement.
Despite resistance from certain countries, including France and Poland, Christos Hansen is confident that the EU's rapprochement with Ukraine will occur before the official enlargement of the bloc.
In addition to Ukraine, the EU is considering a trade agreement with Mercosur, which will allow the diversification of trade ties and reduce risks in the event of worsening relations with the U.S.
Christos Hansen notes that the agreement will allow the EU to expand exports of strategic agricultural products, such as wine, dairy, and spirits. At the same time, there are risks for sensitive sectors, particularly poultry, sugar production, and beef. Protective mechanisms will be included in the agreement to safeguard these sectors.
Thus, the EU plans to use trade agreements with Ukraine and Mercosur to overcome economic challenges, strengthen its position in the global market, and ensure the stability of the European agricultural sector.
