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02:14Ero News Reporter Peggy Corlat is an expert on trade policy to ratify these agreement
02:19behaving which is both commercial and political the European Commission prepares using two different
02:26procedures can you explain the whole agreements contains parts such as the political part which
02:31have to be ratified by national and regional power manczne it is a risky undertaking because
02:38si todo el acuerdo es ratificado por las parlamas nacionales,
02:42significa que algunos de ellos pueden oponer el texto,
02:45como ha sucedido en el pasado,
02:47cuando las parlamas nacionales, como el de la Alemania o el australiano,
02:52oponieron el acuerdo.
02:54Así que la Comisión Europea decidió separar la parte de la parte de la parte de la competencia de la EU,
03:01para que el Consejo vota el texto,
03:04los peítulos votan en la mayoría de la reivindicación y los textos votan por la reflectencia solo.
03:12Por eso la parte de la parte de la comprensaço tiene más chance de ser implementada rápido.
03:17Muchas sombras son данные más Each Blackestsظultados se consideres al acuerdo,
03:20por que eso?
03:21¿Y cómo realmente necesitamos el zoomellense para que este acuerdo sea aprobado y entrar en uso?
03:28– tinc oir mucho la sesión al respecto a la estrategia,
03:32on the ground that it would create unfair competition to its farmers.
03:37But it may have changed today because the European Commission has given assurances
03:42that it would strengthen controls over imports coming from Mercosur countries
03:47and their impact on the EU markets.
03:51But Poland now is stepping up against the deal.
03:56Polish Prime Minister Donald Tusk said he was opposed to the agreement.
04:00But it remains uncertain whether he is going to be able to gather a blocking minority against the deal.
04:08Because indeed to be signed the deal requires 15 member states in favour of it
04:14and a blocking minority would require 5 member states representing 35% of the population.
04:21The agricultural sector is one of the biggest critics of the agreement
04:25which is why the European Commission recently added safeguards.
04:29Quotas that limit the import of products considered more sensitive
04:33such as beef, poultry, sugar, rice and honey.
04:39Increased controls that may lead to the suspension of imports of a certain product
04:43if they increase by more than 10% or prices fall by more than 10%.
04:48EU pesticide and animal welfare rules will have to be followed by Mercosur countries.
04:54A 6.3 billion euros fund to help farmers affected by market crises.
05:00I'm joined now by Karel Lano, chief executive of the Centre for European Policy Studies.
05:07Can the EU afford not to ratify this agreement considering that it had to make a lot of concessions
05:15in the trade deal with the US that will raise tariffs to 15%?
05:19We need to know, let's say, that the geopolitical situation since it started to negotiate 25 years ago
05:26until today has changed so much.
05:28If we go to Latin America, and we see this also for Mercosur,
05:31the most important trading partner has become China.
05:33So if we know, say, we need to be respected as a partner also, for example, with the United States,
05:41then we should respect ourselves and say we absolutely need to conclude this agreement
05:45also to become a more important trading partner for Latin America.
05:49And if we were not to do this, I mean, it will just, after this, I would say,
05:53almost scandalous EU-US agreement, just put the EU in a corner of being an unreliable partner.
06:01The partnership will also create access to the essential raw materials as an alternative to China
06:08that concentrates a lot of that production.
06:10So how significant is this for the European industry, for instance?
06:14It's, again, an opportunity for us, I mean, to reduce, I mean, drastically,
06:20this huge dependence which we have from China, which was built up without us noticing it.
06:25And now we have an opportunity to say, look, we'll do it with another region.
06:28We will just reduce our huge exposure to China and to say, look, we will make sure that Brazil can,
06:34or, say, Argentina or Peru can also develop their commodities or, say, their raw materials export to Europe.
06:42So in addition to MECASU, the EU has also revised an agreement with Mexico.
06:48Where should the EU look next for partners?
06:51We should, above all, as a policy, after what the US has done to us,
06:56let's say in this trade agreement from the 18th of August,
06:58make sure that we find a group of countries which have the similar approach to trade
07:06and to the maintenance, above all, of the trading system, which we have in the post-World War II order,
07:12where we go for a system, underscored by the WTO, the World Trade Organization,
07:17where we apply these principles of most favored nation clause
07:21and where we want to have, as the EU wants, as much as possible, zero tariffs.
07:26International trade is one of the arenas in which the EU projects its political and economic model.
07:33Some tout economic benefits and new markets,
07:36while others warn about the risks of more concessions to multinationals,
07:41increasing risks of deforestation in Amazonia and consumer losses.
07:45Given the tariffs recently imposed by the US on the bloc,
07:50some European governments most critical of the agreement with Mercosul may now change their minds.
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