Argentina guarantees honey and egg quotas for the European Union
The agreement between Mercosur and the European Union is already beginning to provoke an internal dispute between the countries of the South American bloc over the division of tariff-free export quotas for the European market. Argentina and Uruguay announced last week that they had guaranteed relevant shares of quotas for products such as honey, eggs and rice, in a move that exposed the lack of clarity regarding how distribution will be made among the bloc's members.
The issue gained repercussion after the Minister of Deregulation and Transformation of the State of Argentina, Federico Sturzenegger, stated that the country was left with practically the entire honey quota and 100% of the tariff-free egg export quota to the European Union.
According to the minister, Argentina's performance was the result of the creation of a digital system for the rapid issuance of certificates of origin validated by the State, a document necessary to access the benefits provided for in the trade agreement between Mercosur and the EU.
In a post on social media, Sturzenegger praised the agility of Argentine exporters and stated that Brazilian, Uruguayan and Paraguayan producers were still seeking to regularize their documentation while Argentines had already submitted their requests.
Uruguay also celebrated space gained in quotas. Uruguayan President Yamandú Orsi stated that the country has secured 63% of the total rice export quota for the European Union.
The statement was made following an announcement by the country's interim Minister of Foreign Affairs. In a post on social media, Orsi praised the technical work of the Uruguayan government and stated that "today we can shout a goal", in reference to the trade dispute within the bloc.
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The public demonstrations highlight an environment of competition between Mercosur countries for the export quotas provided for in the agreement with the Europeans.
There is still no clarity, however, on the definitive distribution model. Among the bloc's members, there is uncertainty about whether the criteria will be based on the order of arrival of export orders or on a proportional division between countries.
Brazil defended a distribution linked to the productive capacity of each Mercosur nation. Paraguay, on the other hand, supported a more equitable distribution between the four members of the bloc.
For now, the announcements made by Argentina and Uruguay indicate that the mechanism may be working in practice through a "first come, first served" system, which has increased diplomatic and commercial pressure within Mercosur regarding access to the European market.
Source: CNN