Mercosur: European Commission removes beef from trade proposal

Global Business

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In a new twist in trade talks between the EU and the South American trade bloc known as Mercosur, the European Commission has removed beef from the proposal.

The deal was expected to include a more preferential tariff plan for beef imports coming from the member countries.

The two regions have been trying to seal a free trade agreement for the past two decades. CCTV America’s Joel Richards explains from Buenos Aires.

Mercosur: European Commission removes beef from trade proposal

Mercosur: European Commission removes beef from trade proposal

In a new twist in trade talks between the EU and the South American trade bloc known as Mercosur, the European Commission has removed beef from the proposal.The deal was expected to include a more preferential tariff plan for beef imports coming from the member countries. The two regions have been trying to seal a free trade agreement for the past two decades. CCTV America's Joel Richards explains from Buenos Aires.

The European Union announced there will be no beef on the menu this week when it sits down with Mercosur to continue talks over a free trade agreement.

In South America, there had been hopes of broadening markets for one of this region’s prime exports.

In Argentina, the new government prioritized boosting agriculture exports to kick start the economy. 

But the European market will have to wait for South American beef exports. Many in the U.K. fear their beef industry will suffer if large amounts of cheap tariff-free imports from Argentina enter the EU. Nevertheless, Argentina is seeing economic change under President Mauricio Macri.

The EU’s refusal to allow more beef imports are just one stumbling block which the Irish Farmers Association estimated would have cost EU farmers nearly $9 billion annually.

Apart from their dispute over beef production, officials are hoping for a new era in bilateral trade relations between the European Union and Mercosur, but they know this week’s negotiations are just one step in a process which began back in 1999.