FARM calls for consensus on Mercosur-EU export quota distribution

The Federation of Rural Associations of Mercosur (FARM) is calling for an urgent consensus among Mercosur member states to establish a distribution framework for export quotas granted by the European Union. Under the trade agreement between the two blocs, the EU has established quotas for 22 products exported from Mercosur, while Mercosur has granted quotas for 11 European products.

FARM warns that the current lack of a pre-agreed distribution mechanism poses significant economic and strategic risks. Specifically, the organization expressed concern over the ‘first in, first out’ (FIFO) allocation criterion, which could trigger a race to submit applications rather than allowing for orderly, long-term commercial planning. This uncertainty may reduce the negotiating power of exporters and create operational insecurity regarding the actual volumes available for use.

The federation emphasized that resolving this issue is critical not only for the current agreement but also to set a precedent for future trade negotiations Mercosur conducts with other markets.