Romanian government defends backing of EU-Mercosur trade deal amid criticism

The Romanian government said its endorsement of the European Union–Mercosur trade agreement followed established procedures and was based on assessments from the Ministry of Economy, responding to criticism from coalition partners over a lack of transparency and internal consultation.

In a press release issued on January 13, the government said the vote cast by the Ministry of Foreign Affairs in support of the agreement reflected reports and technical evaluations prepared by the Ministry of Economy, which it described as the institution responsible for coordinating the process, G4media.ro reported.

The statement followed public objections from the Social Democratic Party (PSD) and accusations from the Democratic Alliance of Hungarians in Romania (UDMR) that the decision had been taken without debate within the ruling coalition.

The government said the agreement includes safeguard mechanisms aimed at protecting domestic agriculture. According to the statement, these include a safeguard clause triggered in the event of a 5% variation in prices or volumes of imported agricultural products, as well as stricter controls on compliance with sanitary and veterinary standards for imports from Mercosur countries. These provisions, the government added, are in line with the position adopted by coalition party representatives in the European Parliament.

It also stressed that the agreement does not entail full liberalisation of agricultural trade. Imports of sensitive agricultural products will be allowed only within strict quantitative limits, estimated at 1%–1.5% of total imports, while EU standards will apply to all imported products.

Separately, the Chamber of Commerce and Industry of Romania (CCIR) announced that it supports the EU–Mercosur free trade agreement, describing it as an opportunity to strengthen Romania’s role as a regional industrial hub and to diversify export markets for domestic companies. CCIR said its position aligns with the decision adopted by the European Association of Chambers of Commerce and Industry (EUROCHAMBRES) at its General Assembly in November 2024, as reported by Ziarul Financiar.

CCIR representatives said the agreement should not be viewed solely through the lens of agriculture, noting that it provides for free trade and the gradual elimination of more than 90% of customs duties between the two blocs. They said the deal would significantly ease access for Romanian and European exports of automobiles and spare parts, chemical and pharmaceutical products, and industrial machinery to Mercosur markets.

Industry continues to account for about 30% of Romania’s GDP, with local companies producing assemblies and subassemblies for major Western European car manufacturers, as well as components for household appliances, energy equipment, and pharmaceutical products.

iulian@romania-insider.com

(Photo source: Cateyeperspective/Dreamstime.com)


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