MEPs have backed extra safeguards which could see the temporary suspension of lower tariffs on agricultural products from Mercosur countries if a surge in imports is seen to be harming EU producers.
The new regulation, already informally agreed with EU member states, was adopted by 483 in favour and 102 against, with 67 abstentions on Tuesday.
It sets out how the EU could temporarily suspend tariff preferences envisaged under the EU-Mercosur trade deal of agricultural imports from Argentina, Brazil, Paraguay and Uruguay.
Under the new rules, the European Commission will launch an investigation into the need for protection measures when imports of sensitive agricultural products, including poultry, beef and eggs increase by 5% on a three-year average. This is below the 10% per year proposed by the Commission.
Imports may also be temporarily suspended if prices are 5% below the relevant domestic price.
Investigation
An investigation may also be requested by a member state or a natural or legal person representing the industry or an association acting on behalf of the industry in the event of a threat of serious injury to the industry concerned.
At least once every six months, the Commission will have to present a report to the European Parliament assessing the impact of imports of sensitive products.
Standing rapporteur for Mercosur Gabriel Mato said that the safeguards will ensure that the EU-Mercosur agreement is accompanied by a balanced and credible protection mechanism for our agricultural sector.
"They strengthen market monitoring, introduce clear and objective criteria to detect disruptions and allow for faster action for sensitive products when there are indications of harm. They will provide farmers with stability and predictability, while preserving the overall balance of the agreement," he said.
Next steps
Once formally adopted by the European Council, the regulation will be published in the official journal of the EU. It will apply once the Mercosur interim trade agreement enters into force.