The vice-president and minister of Development, Industry and Commerce, Geraldo Alckmin, stated this Wednesday (25) that the decree on the safeguards of the trade agreement between Mercosur and the European Union (EU) will be sent to the Civil House, where it will undergo legal analysis before publication. Safeguards are instruments to protect national producers. 
The text provides mechanisms to protect agricultural products if they are sanctioned by European bodies. This is because, at the end of last year, the European Parliament approved stricter rules for agricultural imports linked to the agreement with Mercosur, whose measures would be triggered if large-volume imports cause or threaten serious harm to European producers.
The national agribusiness sector wants these safeguards to also be assumed by the Brazilian government, in the event of an increase in imports of competing European products.
“There is always concern from some sectors. So, we are forwarding the proposal today, to pass through the ministries, the safeguards decree”, declared the vice-president.
The speech was made after a meeting with the president of the Chamber, Hugo Motta (Republicanos-PB), and deputy Marcos Pereira (Republicanos-SP), rapporteur of the project that ratifies the agreement between the European and South American bloc, which will create one of the largest free trade zones on the planet, with production valued at US$ 22 trillion and a consumer market of 720 million inhabitants.
The Civil House will be able to consult other ministries, such as Finance, and then send the decree for signature by the President of the Republic, before the Federal Senate approves the ratification of the agreement. THE The ratification text was approved this Wednesday by the plenary of the Chamber of Deputies.
How safeguards work
Safeguards are mechanisms provided for in trade agreements that allow a country to react to import surges resulting from negotiated tariff reductions. If serious damage to national production is proven, the government may:
- Establish import quotas;
- Suspend the tariff reduction provided for in the agreement;
- Restore the tax level prior to the treaty’s validity.
The decree must define deadlines, investigation procedures and conditions for applying the measures.
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