New opportunities for Greek exporting businesses across all sectors, protection against “imitations” of 21 domestic agricultural products with geographical indication, and strong safeguard mechanisms in favor of producers in cases of sudden import surges are the consequences of the EU–Mercosur agreement, according to its initial assessment by the Ministry of Rural Development.

Greece’s positive vote took into account all these elements that safeguard Greek farmers and provide new prospects for our products. Moreover, the agreement would have passed regardless of Greece’s stance, as it required a qualified majority that had already been achieved by the other Member States, the ministry notes, adding that the framework for the EU–Mercosur agreement had already existed since 2019, under the SYRIZA government, which had even “celebrated it at the time.”

In addition, on Tuesday, 16 December, the European Parliament approved a package of measures to ensure that the Mercosur trade agreement is accompanied by effective protection mechanisms for the Union’s most sensitive agricultural sectors.

The farmer protection measures were adopted by a very large majority of the European Parliament (421 in favor, 161 against). In favor voted all political groups (European People’s Party, Socialists, Liberals, Greens, Conservatives and Reformists), except for the Left and the Patriots (the Le Pen–Orbán group), which voted against.

Among Greek MEPs, the protection measures were supported by New Democracy MEPs, while the remaining Greek MEPs voted against. As noted, PASOK MEPs were the only ones within the Socialist group who did not vote. “That is, their Socialist colleagues from Spain, France, Romania, Italy, Poland—countries with strong agricultural production that are widely exposed to competition—do not care about farmers, and the only ones who do were the PASOK MEPs?” the Ministry of Rural Development notes.

It is also noted that the ECR group, to which the MEPs of Mr. Velopoulos belong, supported the measures and even argued in favor of the agreement and the measures.

It should be noted that Greek exports of agri-food products to Mercosur are small, amounting to just €34.3 million, and with the agreement they can increase significantly, as our products will enter a new market of 270 million citizens in Brazil, Argentina, Uruguay, and Paraguay.

Protection of products

The agreement protects 344 distinct food and drink products across the EU from imitations, of which 21 are Greek. Specifically, among others, products such as feta, olive oil and Kalamata olives, Corinthian currants, Kozani saffron, manouri, kefalograviera, Chios mastic, Sitia and Lygourio olive oil, wines from Mantineia, Naoussa, Nemea, Santorini, Samos, Amyntaio, retsina, tsipouro, etc., are protected.

This protection will help sell more Greek products at higher prices, as the selling price of products protected by Geographical Indication is two to three times higher than that of standard products.

Clauses and safeguards

In the event of market disruptions, significant measures will be taken to protect the interests of Greek farmers. Specifically, the agreement includes a safeguard clause to protect EU farmers from any sudden increase in imports. This is the first time such a measure has been included in an EU agreement, even for products already subject to quotas.

In addition, a maximum limit (quota) will be set on the quantity of agri-food products imported from Mercosur that benefit from lower tariffs for beef, pork, and poultry.

As regards food safety, the EU’s high standards that protect EU citizens will not be put at risk in any way: all Mercosur products must comply with the EU’s strict food safety regulations.

Measures of the European Parliament

Responding to the concerns of Greek and European farmers about the potential impact of the agreement on agricultural markets, the European Parliament established clear procedures, strict timelines, objective criteria, and a strong operational framework that ensure market stability and provide reliable protection against sudden disruptions. According to the Ministry of Rural Development, the following will now apply under the Mercosur agreement:

The producer protection measures adopted by the European Parliament are as follows:

• Reciprocity obligation, meaning that imported products must meet European environmental, health, and phytosanitary standards in order to enter the EU. The EU is already moving toward a complete overhaul of Customs to ensure stricter controls on what is imported into Europe.
• Strong legal protection for all products with Geographical Indication, such as feta. Wines such as Santorini, Nemea, Naoussa, and spirits (Ouzo, Tsipouro) cease to be “generic names” and acquire legal protection. The agreement provides for the reduction or abolition of high tariffs on products that thereby become more competitive in large markets.
• A list of 14 agri-food products sensitive for the EU (including citrus fruits, olive oil, cheeses, kiwifruit, peaches, eggs, meat, rice, honey) for which special protection is предусмотрed. Producers will be protected from unfair competition, market disruptions, and sudden increases in imports through quotas and controls. Specifically, safeguard mechanisms are foreseen if an increase in import volumes of more than 5% annually is observed, or a decrease of more than 5% annually in the average import price of a given product. Such mechanisms include the reintroduction of tariffs and the restriction or suspension of imports.

It is also noted that, as announced by the President of the European Commission, resources of €45 billion are being mobilized immediately for the primary sector within the framework of the new Multiannual Financial Framework. As Prime Minister Kyriakos Mitsotakis has stated, this constitutes a substantive step in supporting Greek and European farmers—a proposal that shows that Greece’s voice in Europe is being heard louder and more clearly.

Boost to service exports as well

Greece and the Mercosur countries export many services to each other. Greek service exports to Mercosur amount to €1.6 billion annually. In 2023, the main service exports included transport (€1.5 billion), tourism (€67 million), and culture (€2 million).

The EU–Mercosur agreement will further expand the Mercosur services market in sectors such as financial and postal services, courier services, telecommunications, transport, digital trade, and the environment.

Ninety-seven percent of all Greek exporters are small companies. These companies often struggle to export outside the EU due to additional costs and administrative procedures.

The EU–Mercosur agreement will change this by offering more opportunities for small businesses, as it will, among other things, reduce costs by abolishing tariffs and simplifying customs procedures, while also easing the administrative burden by facilitating product certification for local sales.