US sees US $ 4 billion in agricultural exports from the country at 'risk' because of the EU-Mercosur agreement

Published 2021년 1월 11일

Tridge summary

The article highlights the potential impact of the European Union-Mercosur trade agreement on US agricultural exports, as analyzed by the US Department of Agriculture's Foreign Agricultural Service. The agreement could significantly affect US ethanol exports to the EU, with a 28% market share, due to tariff-free quotas for Mercosur countries. However, the impact on US meat exports is expected to be minimal, thanks to a recent US-EU agreement that increases meat import quotas. The article also notes the diverse impact on various American agricultural products and the challenges they may face in being substituted. Additionally, the article mentions the significance of the agreement in recognizing 350 European geographical indications and the victory of the precautionary principle for European diplomacy.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The United States has US $ 4 billion in agricultural exports that may be affected to some extent by the trade agreement between the European Union and Mercosur, according to an analysis by the Foreign Agricultural Service of the country's Department of Agriculture (FAS / USDA). The agreement has yet to be ratified by national parliaments. One of the American products that can be harmed is ethanol, which has a 28% share of imports from the European Union, according to the American agency. Between 2015 and 2019, the American ethanol market share in the European market was, on average, 22%, while that of Mercosur ethanol was 7%. With the agreement with the EU, Mercosur will have a tariff-free quota for 570 million liters of ethanol for industrial use and 253 million liters of ethanol for other uses, including fuel. The FAS notes, however, that other countries also export ethanol to the European bloc, and it is not yet known which exporting countries will be most affected. American ...

Source: Canaonline