The free trade agreement between the European Union and Mercosur, although controversial, represents a strategic opportunity for the European, and more particularly French, agricultural and industrial sectors. While some fear heightened competition and unequal environmental standards, this agreement could nevertheless open the door to new dynamic markets, provided we know how to exploit the benefits.
Part of French agriculture perceives it as a threat. Concerns related to the importation of certain products, particularly beef from South America, are legitimate. Often cheaper, they can disrupt the fragile economic balance of many farmers. However, this same agreement could offer unprecedented opportunities to specific sectors of the French agri-food industry, renowned for their excellence. Wine, high-end dairy products, and even cereals can find a market of choice in Mercosur countries, where the middle class and consumption habits are evolving rapidly.
At the same time, French industry also has a lot to gain. The Mercosur countries – Argentina, Brazil, Bolivia, Paraguay and Uruguay – have a growing need for advanced technologies, sustainable energy solutions and industrial equipment. Sectors such as aeronautics, where France excels, or those of the energy transition, with innovations in wind or solar power, have considerable opportunities. Reducing customs duties could make French products more competitive against other economic powers, notably the United States and China, already very present in South America.
Harmonize standards
However, taking full advantage of this agreement involves overcoming several challenges. The first lies in the harmonization of standards. Europe is recognized for its high standards in health safety and sustainable development. If the Mercosur agreement does not guarantee strict application of these standards, it will fuel environmental dumping. Increased vigilance and rigorous controls are therefore essential so that it does not become a source of imbalance, but a lever of opportunities.
For French companies, the main thing will be to position themselves in segments where competition is less fierce: high-end, innovation and sustainability. In the agricultural sector, for example, the AOP and IGP labels must be highlighted to attract South American consumers who are increasingly sensitive to the quality and origin of products. For their part, manufacturers must take advantage of this agreement to strengthen their presence in a market where the modernization of infrastructure and industries is a priority.
Finally, it is crucial that the State and European institutions support these transitions. Financial and logistical support policies, particularly to help small farms and industrial SMEs, will be decisive. This support will help reduce fears while promoting a transition towards more competitive and sustainable models.
The Mercosur agreement is not free of risks, but it also holds promise. With a market of 780 million consumers, it could become a real source of international growth, at a time when the United States could partly close itself with new customs duties targeting France. To do this, we still need to go beyond the strict political policy made in France.
You are reading an article from L'Usine Nouvelle 3736 – November 2024
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