The mega trade deal that has French farmers in uproar

BusinessDecember 19, 20244 min read

The mega trade deal that has French farmers in uproar

The mega trade deal that has French farmers in uproar

The mega trade deal that has French farmers in uproar

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In France, a significant trade deal has sparked considerable concern among farmers, particularly Alix Heurtault, a 34-year-old farmer. She stands on her farm, worried that the new agreement could jeopardize her livelihood. This trade deal, signed in Uruguay, is one of the largest in the world and aims to enhance trade between the European Union and South American countries, including Argentina, Brazil, Paraguay, and Uruguay. The deal proposes to reduce tariffs and increase the volume of imports and exports, potentially impacting nearly 800 million people. While some view this agreement as a positive step for the global economy, many French farmers are expressing their anger and fear about its implications. Alix states, 'I fear that the deal will mean making ends meet becoming even more difficult for farmers like me. ' She is hopeful that the French government will intervene to block the deal. The agreement would allow for an influx of South American beef, chicken, and sugar into the EU at lower prices, while European products such as cars, clothing, and wine would gain better access to the Mercosur market. To successfully block the deal, France needs to rally support from at least three other EU countries, representing a significant portion of the population. Countries like Ireland, Poland, and Austria have voiced their opposition, but Italy's stance remains uncertain, making it crucial for France to secure their support. The deal was signed by European Commission President Ursula von der Leyen alongside South American leaders, but it still requires ratification from all EU member states. French farmers are actively lobbying their government to reject the agreement, and President Emmanuel Macron has described the deal as 'unacceptable in its current form. ' Alix Heurtault cultivates sugar beet, wheat, and barley on her 150-hectare farm located about 60 kilometers south of Paris. She believes that the trade deal would severely disadvantage French farmers in favor of EU manufacturers. 'It feels like we're a bargaining chip,' she remarks, highlighting the disparity in regulations between French farmers and those in Mercosur countries, where pesticide restrictions are less stringent and labor costs are lower. The sentiment among French farmers is largely aligned with Alix's perspective, leading to a series of protests across the country. Recently, around 200 farmers staged a demonstration in front of the Grand Palais museum in Paris, where they dumped bales of straw and ignited red flares, chanting slogans like 'We are feeding you, show us some respect. ' This protest coincided with an annual meeting of commodities importers and exporters, emphasizing the farmers' discontent with the proposed trade agreement. Stéphane Gallais, a cattle farmer and national secretary of the farmers' union Confédération Paysanne, articulated the purpose of the demonstration, stating, 'Today's demonstration is a stance against free trade, especially the EU-Mercosur agreement that we've been opposing since it was first discussed in the late 1990s. ' While France stands firmly against the trade deal, other EU nations, including Germany, Spain, and Portugal, are in favor of it. Supporters argue that the agreement represents a stark contrast to the protectionist policies proposed by Donald Trump, who is expected to return to the White House next month. Uri Dadush, a trade policy expert, believes that although European farmers may face challenges, the overall impact will be limited. He explains, 'The deal is a threat for European farmers, as the world's most competitive agricultural sector gets access to their market, but we're talking about a tiny amount of liberalization spread out over a long period of time. ' Under the agreement, Mercosur countries would still face restrictions on their exports to the EU, with the proposed increase in beef exports accounting for less than 1% of EU consumption. Dadush also sees the deal as an opportunity to push for necessary reforms in the heavily-subsidized EU agricultural sector. Chris Hegadorn, a professor of global food policies, believes that the agreement could ultimately benefit Europe, including its farmers. He notes that French cheese and wine producers stand to gain from the deal, and it could also lead to improved health and environmental standards in Mercosur countries. However, David Cayla, an economics lecturer, expresses skepticism about the EU's ability to enforce these standards in Latin America. He warns that French farmers will face increased competition from countries with more favorable climates and fertile soils. 'We need to protect European agriculture that's also a question of food sovereignty,' he emphasizes, pointing out that the Covid-19 pandemic highlighted the fragility of global supply chains. Antoine Gomel, a farmer in northern France, shares similar concerns, stating that the trade deal could further depopulate the French countryside. He believes that farms are essential for maintaining community cohesion and preventing rural areas from becoming deserted. As the protests continue, farmers like Stéphane Gallais remain hopeful that EU member states will reject the deal, viewing it as detrimental to their livelihoods and the future of French agriculture.

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"Alix says, 'I fear that the deal will mean making ends meet becoming even more difficult for farmers like me.'"

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"They fear that it will hurt their ability to make a living."

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