Nicosia: The plenary of the House of Representatives approved a resolution on Thursday concerning the European Union-Mercosur agreements. This resolution, presented by the AKEL-DIKO parliamentary groups along with EDEK, DIPA, and the Cyprus Greens, highlights apprehensions regarding the potential impacts these agreements could have on the primary sector both within Cyprus and more broadly across EU Member States.
According to Cyprus News Agency, the resolution passed with 31 votes in favor and 8 against from DISY MPs. A separate resolution from DISY on the same matter was rejected, garnering only 10 votes in favor against 29. The approved resolution emphasized the lack of timely and substantive consultation with directly affected stakeholders prior to the Cypriot government's formulation of its position at the EU Council level. Additionally, no national impact study on rural development had been prepared.
The Parliament expressed concerns that the agreements could negatively impact agricultural production, producers' income, and rural sustainability, especially given increased production costs, climate pressures, and strict European regulatory frameworks. There were also serious reservations about importing products not meeting equivalent environmental, health, and labor standards, alongside fears of unfair competition due to lower production costs in Mercosur countries.
Environmental impacts, such as deforestation risks and ecosystem degradation, were also highlighted in the resolution, along with insufficient protection for Cypriot PDO products like halloumi. The Parliament noted ongoing reservations about the adequacy of safeguard clauses and the effectiveness of controls.
The resolution urged the Republic of Cyprus, the European Commission, and the Council of Europe to refrain from implementing or promoting the EU-Mercosur Agreements until the Court of Justice of the European Union has definitively ruled on their legal basis. It called on the government to engage in consultations with agricultural organizations and stakeholders to prepare an impact study for the Cypriot agricultural sector, to be shared with all interested parties before adopting and implementing the agreements.
Moreover, the Parliament requested that EU institutions ensure full reciprocity in production standards, strict controls on imported products, and an effective traceability system before the adoption and implementation of the iTA and EMPA Agreements.