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EUMERCOPOL — Result In Brief

Project ID: 6516
Funded under: FP6-POLICIES
Country: France

Agri-food trade in South America spurs policy changes

South American countries represent an important trade partner for the EU, but trade liberalisation and competition on certain crops have required a re-evaluation of existing agri-food policies.
Agri-food trade in South America spurs policy changes
Mercosur, the South American common market which is composed today of Argentina, Brazil, Paraguay, Uruguay and Venezuela represents an important trade partner and interesting case study for the EU. As the South American bloc conducts significant trade in the agri-food sector, the EU has sought to analyse the impact of liberalised trade between both regions.

The EU-funded project Eumercopol studied trade impact on markets, budgets and key indicators of the countries' agricultural sectors. It examined these factors against EU commodity systems and evaluated production, consumption and trade between both blocs.

Moreover, the project considered the effects of increased liberalisation on global trade, particularly since the EU and Mercosur compete directly over certain crops. This has prompted an urgent need to investigate the impact of the change in the context of current food production and trade policies.

To achieve its aims, the project team gathered multidisciplinary teams in agri-food, econometrics, food sciences and database management, representing partners from three EU countries and six Mercosur countries. Many benefits and results have emerged from the project, including databases, policy briefs and publications on enhancing competitiveness in the agri-food sector and improving related policies.

The team also examined ex ante impacts from EU-Mercosur trade liberalisation and articulated econometric trade and impact models to strengthen EU policy research. On another front, Eumercopol gathered information on crop production as well as growth and trade potential in concerned countries using unified methodology. In this light, the results of this project are expected to have a positive impact on improving agricultural trade between the two regions.

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