https://www.reuters.com/world/europe/trump-vows-tariffs-eigh...
In my opinion it is a net negative for all countries in Europe, but one.
This is a boon to any European manufacturer and machining company.
That's the thing with tariffs, they only work once.
If there's one thing companies hate more than taxes, it's uncertainty.
Once again, Germany has pushed through its interests at the expense of other European nations like Poland. This time even France was against it.
What is Germany going to get? A new market for their decaying automobile industry.
What is the rest of Europe going to get? Cheap, low quality food shipped thousands of kilometers. Food produced with lower standards than food produced in the EU - so farmers in Europe now have to face unfair competition.
This is a boon for any European manufacturing and tech company. Not "just" German car manufacturers but especially machining and pharmaceutical companies.
Farming is already incredibly subsidized in the EU, and has an outsized political capital for their importance based on historical momentum. This is also primarily bad for the beef industry, which is produced in the EU using very intensive and polluting (ammonia) methods which are also bad for animal welfare. They deserve no sympathy.
As it should be if we don't want to wake up one fine day in the middle of a global war with no food supply because of a naval blockade and have our children starve to death.
We need on the contrary to produce less globally, but more organically, and to reduce waste and produce locally
This is going to be a good agreement if it is policed well enough that Mercosur countries are effectively forced to raise their food-production standards (because accepting imports doesn't automatically mean they can ignore regulations on suitability). Europe gets cheaper basic staples and sells LATAM more services and value-added products.
I'd rather help our Latin "cousins" get out of poverty, than having to deal with the insanity of US culture wars.
Fortunately there's around 800kg per capita worth of food storage in the EU, so should a war break out we're not all immediately dead - just vegetarian after a period of slaughtering all the livestock that can't be fed.
God forbid we subsidize food too, it's only like the #1 priority when it comes to sovereignty after all, we should definitely not produce locally and rely on foreign countries for our food autonomy
https://policy.trade.ec.europa.eu/eu-trade-relationships-cou...
Even in France agriculture is a very small percentage of the GDP and jobs. But what has happened is a demonstration of the loss of sovereignty with the EU effectively imposing something against the wish of the country. So the significance is political, and we'll see if that has tangible political effects or not.
- there are climate change issues
- there are many issues with pollution getting in the food chain
- we need to be more autonomous, and less depending on other nations, because of idiots like Trump
I think on the contrary we should defend our local agriculture, when it is respectful of nature
It is not even a matter of fairness, but of defending one owns interests.
I for once are happy they are getting a reality check for once
So even if these lobby talking points would be true, and everything had to be 100% subsidized, that wouldn't be a problem.
"paying a premium to have options in multiple possible futures"
And the idea that food products from there are low quality is a very old and uninformed take. For better or worse SA has invested heavily in technology in the agricultural sector. Researches from Europe go to Brazil to learn about cattle genetic improvement and farming, not the other way around.
Most of Europe economy comes from services and manufacturing. They’re ensuring a market for that larger base. Angering the small percentage of farmers to ensure food supply and manufacturing survival is the trade off.
Some stuff forbidden in EU is used in e.g. Brazil, but as long as residues are at safe level, it’s considered ok. European farmers are against this part, because their business model relying on only safe substances is threatened. However, it may be possible as well that EU regulatory pressure will push American farmers to adopt stricter standards for their exports.
Other agricultural imports, like soy and coffee beans, are a huge boon to the EU on the other hand. If this results in cheaper coffee, everyone in my country, for one, will be ecstatic.
Also possibly rainforest destruction for crops, but I'm not as sure about that.
Mercosur countries have a powerful beef industry which they're proud of, and their governments are interested in advancing that industry. Lowered beef tariffs were almost certainly one of their prerequisites to forming a deal.
That said, do note that the tariffs are only lowered up to a quota level of beef imports. Relative to the size of the EU's domestic beef industry, these imports are not that significant.
And EU farmers are subject to a ridiculous number of regulations and costs. The thing is, these may very well be good for environmental reasons, but it doesn't work if we just start importing from countries that do the opposite.
comrade1234•1h ago
Switzerland also has a free-trade agreement with china that has been very lucrative. No other European country has this.
nephihaha•48m ago
comrade1234•44m ago
BSDobelix•39m ago
And India ;)
https://www.bag.admin.ch/en/newnsb/O8hG66Fgv1j36OLRRz0Ud