Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Argentina food import ban threatens EU trade deal

Published 06/29/2010, 12:56 PM
Updated 06/29/2010, 01:04 PM

* EU exec says Argentina food import restrictions "illegal"

* Measures could affect EU-Mercosur trade talks, says Ciolos

* Greece says exports worth $2.4 million blocked since April

By Charlie Dunmore

LUXEMBOURG, June 29 (Reuters) - Restrictions on food imports by Argentina could undermine renewed talks on a free-trade agreement between the European Union and the Mercosur group of South American countries, EU farm ministers and officials warned on Tuesday.

EU countries including France, Germany and Italy backed a complaint by Greece over Argentina's curbs, which have been applied to imports of foods that South-America's second largest economy already produces itself.

"The Argentinean restrictions will have a wholly negative influence on the resumption of talks for the conclusion of an EU-Mercosur agreement," Greece said in a memo circulated at a meeting of EU farm ministers in Luxembourg.

Greece said that $2.4 million worth of exports of canned peaches had been cancelled or suspended by Argentinean importers since April, equivalent to 40 percent of total Greek exports to Argentina each year.

EU Agriculture Commissioner Dacian Ciolos said the restrictions were being applied to nearly all the agro-food products the EU exports to Argentina.

"Aside from the illegal nature of these measures, I am equally concerned by their announcement on the eve of the resumption of negotiations with Mercosur," Ciolos told the ministers.

A first technical meeting between EU and Mercosur negotiators was due to be held in Buenos Aires on Tuesday, and Ciolos revealed that the Commission had debated whether it should go ahead, before deciding that it should.

"If these measures persist, the negotiations with Mercosur will necessarily be affected," Ciolos added.

EU agriculture ministers and farming groups are strongly opposed to any trade deal with Mercosur, which would likely see Europe cut its import tariffs for agricultural imports in return for greater access to Mercosur's services and telecoms markets. (Editing by James Jukwey)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.