Filtered liberalisation and double standards

The agri-food impacts, environmental risks, and political economy of the EU–Mercosur agreement

  • Imre Fertő ELTE Közgazdaság- és Regionális Tudományi Kutatóközpont; Budapesti Corvinus Egyetem Fenntartható Fejlődés Intézet
Keywords: EU–Mercosur, agri-food trade, CAP, animal welfare, deforestation, sustainability governance, food safety

Abstract

The EU–Mercosur agreement debate is not merely about tariffs. It concerns how market opening interacts with EU environmental, animal-welfare and food-safety standards, and how gains and losses are distributed across member states, product lines and farm types. Recent literature suggests small aggregate effects for the EU but sizeable distributional consequences: beef, poultry, sugar (and partly rice) appear more exposed, while competitive segments (e.g. dairy and pigmeat) may benefit from new export opportunities. “Filtered liberalisation” (tariff-rate quotas, SPS and conformity regimes, sustainability provisions) can mute direct income shocks, yet it does not eliminate a central governance paradox: the perceived gap between strict internal rules and external enforcement. This paper provides a mechanism-oriented synthesis of key impact channels and policy implications.

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Published
2026-03-24
How to Cite
FertőI. (2026). Filtered liberalisation and double standards: The agri-food impacts, environmental risks, and political economy of the EU–Mercosur agreement. Hungarian Economic Review, 73(3), 271-291. https://doi.org/10.18414/KSZ.2026.3.271
Section
Tanulmány