Any trade deal between the EU and Mercosur would include a 'safeguard clause' to suspend South American beef imports in case of a market crisis and would take years to implement, President Macron told a meeting of young farmers ahead of the Paris Agricultural Show this weekend."Whatever the quotas negotiated, there will be a safeguard clause – this is a French red line," he said. "If the market is destabilised and prices are undermined, we can suspend the agreement."
Any trade deal between the EU and Mercosur would include a 'safeguard clause' to suspend South American beef imports in case of a market crisis and would take years to implement, President Macron told a meeting of young farmers ahead of the Paris Agricultural Show this weekend.
"Whatever the quotas negotiated, there will be a safeguard clause – this is a French red line," he said. "If the market is destabilised and prices are undermined, we can suspend the agreement."
Safeguard clauses already exist in other trade relationships around the world. For example, Japan applied a temporary tariff hike on beef last year when imports increased past a threshold set in its legislation.
No effect until 2024
President Macron also said that a tentative agreement would take at least five years to implement.
"We have red lines, the Brazilians and the Uruguayans have their own, so I don't know if there will be an agreement – but if a deal was concluded it would in any case not enter into force during the next European Commission's term from 2019 to 2024," he said.
During that time, the French president vowed to improve border controls to ensure that Europe's food safety, social and environmental standards are enforced more strictly on imported goods.
"If this work does not happen first, I will block implementation," he said.
President Macron also chastised the French meat industry for using scare tactics on the proposed Mercosur deal while failing to invest and improve its competitiveness and importing large quantities of beef, with 70% of foodservice requirements covered by imports.
This includes Irish beef, for which France is the second largest export market after the UK.
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