What will the EU-Mercosur agreement mean for Greece?

Agreement EU–Mercosur is extremely unfavorable for both Greek farmersand for Greek society as a whole. A natural question arises: why did the government rush to say “yes” to the creation of the zone? free tradewhich directly exposes Greece and its economy.

Greece does not export planes and cars, as Germany, Italy or Franceto expect significant benefits from such an agreement. The basis of the Greek economy is primary sectorand it is he who becomes the main victim.

In practice, any negotiations between the government and farmers at this stage no longer matter. Agreement on free, that is duty free trade EU with market in 270 million people – and in fact more than half a billionif we take into account related Latin American countries, exposes Greek producers to competition that literally crush them.

Whatever the prices and production costs of Greek products, conditional “Pepito and Rodrigo” from Argentina will be able to sell the same products even cheaper.

The fact that the agreement was approved deserves special attention qualified majorityeffectively abolishing the principle unanimity and imposing it even on those countries that opposed it.

Explanations that Ministry of Rural Development rushed to give at the last moment – just a day before Greece’s permanent representative in the Council of the EU voted for an agreement along with 20 other countries – on supposedly reliable protection 21 Greek POP productshave nothing to do with reality.

The official website of the ministry records a total of four mentions Mercosur themes:

• 07/15/2019 – then minister Makis Voridis spoke about the need to prepare a “study of the cumulative effect of concessions” under the agreement.
• 11/17/2020 – Deputy Minister Fotini Arabadzi stated that “there cannot be one more stringent standard for European farmers and another for the Mercosur countries,” recalling the negative consequences of similar agreements.
• 04/09/2025 — Kostas Tsiaras warned at the Delphi Forum that Ukraine’s possible accession to the EU or “new Mercosur-type agreements” would lead to “reorganization of the primary sector”.

Obviously, this vague formulation is intended to hide the scale of the impending disaster, since the “reorganization” itself doesn’t explain anything.

Total trade volume between EU and Mercosur exceeds 110 billion euros per year and is only slightly in surplus in favor of Latin American countries. However, for Greece these figures misleading.

Trade turnover of Greece with the two largest countries Mercosur – Brazil and Argentina – totals 770 million eurosthat is only 0.007% total EU–Mercosur trade turnover.

At the same time, the trade deficit for Greece is huge: the country exports only 124 million eurosbut imports 639 million euros. Of these only 34 million euros accounts for Greek agricultural products, while imports of agricultural products from Brazil and Argentina are almost 15 times higher.

After full trade liberalization, this imbalance will increase sharply.

The worst-case scenario awaits Greek farmers in segments where the country traditionally produces large volumes: poultry farming, honey, rice, corn, sugar, lemons, wines, grapes, melons, watermelons, avocados and other products.

Even if we assume that Greek goods will partially retain their position on the domestic market, at the level entire EU the situation will become catastrophic. The European consumer will choose the cheapest product – and it’s not difficult to guess where it will come from.

The key factor remains production costwith whom the Greek farmer unable to compete.

• In Mercosur countries, production is carried out at huge agricultural areaswhereas in Greece – on limited and fragmented lands.
• In poultry farming, Greece produces approx. 250 thousand tons meat per year. From the first year of the agreement, it will be possible to import duty-free goods into the EU. 180 thousand tons.
• In the corn segment for domestic production 1.3 million tons will enter the EU market 1 million tons duty free, genetically modified products from Mercosur.

Was this explained to citizens – that from now on they will consume GMO products?

Greece produces about 25 thousand tons of honeywhich is approximately 10% EU productionbut now she will have to compete with 45 thousand tons duty-free import from Mercosur.

In husked rice, where Greece is able to export to the EU 100 thousand tons from annual 160 thousandin the first five years of the agreement there will be competition from 60 thousand tons products from Mercosur.

A similar situation is expected in the segment citrus.

For Greek livestock farming the consequences will be truly tragic. The industry is already experiencing a sharp decline due to epizootics and scandals around OPECPEPEand now she has to compete with Argentinaproducing meat highest quality and in huge volumes.

Argentine steaks are famous all over the world.

In conditions when domestic meat in Greece has already become luxury itemthere is no doubt that Argentine products will suit the market a real “feast”.

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