Luxembourg farmers fear meat price dumping, says MP Jeff Boonen

Labour costs are significantly lower in Latin American countries, and both environmentalists and NGOs have raised concerns that imports could bring pesticides banned in the EU onto European plates. They also fear that higher demand for agricultural products may accelerate deforestation in exporting countries.

As a farmer himself, CSV MP Jeff Boonen underlined the importance of ensuring EU standards also on imports: “We have border controls, like here at the airport. If products arrive in the EU via our airlines, the various ministries of agriculture, with their agencies, can carry out analyses.” However, for animal welfare standards, on-site inspections would be essential Boonen explained.

EU Mercosur: Meat import volumes comparatively low

After more than 25 years of negotiations, the European Commission has cleared the path for the ratification of the world’s largest free trade agreement with Brazil, Argentina, Uruguay, and Paraguay. The trade component will soon be voted on by the European Parliament and the Council of the EU, while the political component requires approval from national parliaments. The agreement will remove most reciprocal customs duties, and Boonen expressed optimism that the trade component will come into force.

To protect sensitive sectors such as European agriculture, the deal includes a quota of 99,000 tonnes for beef imports. Boonen clarified that this is relatively small compared to overall European imports: “Concerns remain, as we do not know how the markets will evolve. But it is true that we are talking here about 1.5% of the meat we import. For Mercosur countries, this represents 4% of their exports. 96% of meat from Mercosur is destined for China. So we need to know the actual quantities we are dealing with. That is why I also think that the 1.5% additional, cheaper imports will not have such a significant impact. There is still an additional safety net: if the price falls too low, a country can effectively show the Commission the red card.”

Geopolitical turbulence 

"To not ratify the trade deal is something we cannot afford," Boonen explained. He continued: "This is why the CSV, and of course the Prime Minister announced likewise in his State of the Nation speech, Luxembourg will support the ratification of the Mercosur agreement. Given the current geopolitical context, it is vital that Europe has new partners, trustworthy partners and a trade agreement that has been negotiated for more than twenty years." Meanwhile, China has become the most important trading partner of the Mercosur states.

Common Agricultural Policy post-2027?

Aside from their caution over Mercosur, farmers have another worry on their plate: the European Commission’s proposal for the next EU budget foresees less money for agriculture: While the planned €300 billion over seven years still represents a substantial sum, it is roughly 22% less than the current and previous agricultural budgets.

The Commission, however, has stressed that this figure is only the baseline. Farmers could benefit from additional funds channelled through member states, depending on national priorities. CSV MP Jeff Boonen agreed that the ball is now in national governments’ court: “€800 billion are in this envelope which are now foreseen for rural development. Now the responsibility lies with our national governments to find the right additional funding from our budgets and to develop projects that these funds can be used in agriculture. We cannot afford to offer less support in the midst of this trade deal and the challenges of climate change.”

Stream the episode in Luxembourgish on RTL.lu and at RTL Play.