The benefits for EU producers and consumers associated with the EU-Mercosur agreement

I appeal to the Prime Minister, Donald Tusk, to support the European Union’s agreement with Mercosur as soon as possible! This is part of Poland’s and Europe’s raison d’état. Blocking the agreement serves the interests of Russia, which seeks to weaken the EU, and of China, which floods Europe with uncontrolled, duty-free, low-quality goods.

The agreement poses no threat to the Polish economy and does not endanger Polish agriculture. Moreover, goods from Mercosur are of very high quality and, unlike Chinese goods, are already subject to meticulous controls today.

It’s hard to understand why the Polish government yields to a handful of farmers who haven’t read the agreement and for whom it is largely irrelevant. This agreement offers new markets for EU exporters, including Polish exporters, and new, high-quality products from Mercosur for EU consumers, including Polish consumers.

In this context, it’s worth remembering that scaremongering about food from Mercosur countries is plain lies. Goods from Latin America are already subject to detailed sanitary and phytosanitary controls today. The agreement would actually raise standards and better protect the interests of EU consumers, including Polish ones. Thanks to this agreement, we will have higher-quality and cheaper products from Mercosur countries.

From the perspective of the economic interests of EU states, trade with Mercosur countries has been based on partnership and transparency for years. The Polish budget also benefits from it. It is estimated that imports from Mercosur countries bring PLN 2 billion to the Polish budget annually, of which PLN 1.7 billion is VAT and PLN 0.3 billion is duties. After the abolition of duties, VAT revenues will remain and are expected to grow, likely exceeding PLN 3 billion annually. In this context, it is also important that virtually all goods imported from Latin American countries to the EU, including Poland, are taxed, and duties are collected on them.

The same cannot be said about products sold via Chinese platforms such as AliExpress or Temu. First of all, imports from these platforms are significantly larger than total imports from Mercosur countries. It is estimated that in 2024, imports from Mercosur to the EU amounted to about €56 billion, while shipments from AliExpress alone exceeded €150 billion! Meanwhile, goods imported from China are much less frequently controlled, of much lower quality, and are subject to no duties on most of them, and VAT does not reach the Polish budget for some of them.

Why? Because shipments valued up to $150 are not subject to duties, and almost all shipments from Chinese platforms are below that amount. Moreover, customs officials are unable to inspect hundreds of thousands of micro-shipments, allowing low-quality goods, often containing substances banned in the EU or even toxic substances, to enter Europe.

This practice affects Poland as well. Duties on Chinese shipments arriving in Poland are close to zero, and VAT revenues amount to just about PLN 500 million annually. Besides, AliExpress has warehouses, among others, in Germany and the Netherlands, where VAT is paid.

In short, Poland receives very low-quality goods that compete with Polish producers, while the Polish state gets almost no revenue from AliExpress or Temu. Yet hardly any Polish party talks about Chinese imports, while the Mercosur agreement is contested by everyone from the left to the right.

Why is that? Perhaps because China dominates the EU market and does not want high-quality competition. It does not want the EU to tighten cooperation with new partners.

It is also not in Russia’s interest for the EU and Brazil or Argentina to grow closer. After all, Russia itself is desperately seeking new markets following the successive blocks imposed by the EU.

The European Union’s agreement with Mercosur is beneficial to all parties, including Poland, in every respect. Let’s not allow it to be taken from us. If the EU withdraws from the agreement, Latin America will fall into the arms of Russia and China, while Europe will remain isolated and economically weakened. This is a terrible scenario for the Community, including Poland.

Therefore, I appeal to Donald Tusk: Mr Prime Minister, please do not listen to populist ignoramuses and anti-EU allies of Moscow and Beijing. Support the European Union’s agreement with Mercosur!

Piotr Szumlewicz

Piotr Szumlewicz is a sociologist and philosopher, president of the Związkowa Alternatywa trade union, journalist for Reset Obywatelski, columnist for Gazeta Wyborcza, author of numerous articles, reports, and books, participant in social dialogue in Poland between the government, employers, and trade unions.