EU and Croatia on the Brink of Trade Chaos: Latin American Imports Threaten Local Producers
The European Union has decided to reduce its dependence on the American market and turn to Asian and Latin American markets. But what does this mean for Croatian producers of meat, sugar, and cereals? Brace yourselves for a real shock! The liberalization of imports from Mercosur countries – Brazil, Argentina, Paraguay, and Uruguay – could unleash a flood of cheaper products that will crush domestic production.
Why is the EU doing this?
It all started with the American tariffs introduced by Donald Trump – 50% on steel and aluminum, 20% on cars and parts, and 10% on most other products. In panic, the EU decided to reduce dependence on the US and seek new partners, including the CPTPP agreement with 12 Asia-Pacific countries and negotiations with Mercosur.
Who is losing out?
Croatian agriculture! Mercosur countries have huge advantages: vast land, lower labor costs, favorable climate, and less regulation. This means their products will be cheaper and more competitive. Croatian producers of meat, sugar, and cereals will not be able to compete with these prices. Even major European powers like France, Germany, and Poland cannot protect their producers, let alone Croatia.
Is there a way out?
HUP warns that urgent changes to agricultural land laws, consolidation, and strong encouragement of modernization and investment are needed. Croatian agricultural productivity is only 32% of the German average, a catastrophically low figure. Without serious reforms, domestic agriculture is doomed.
What about exporters?
There are some opportunities for exporting value-added products like cheeses, sweets, and drinks, but the question is how profitable this will be given the price competition.
Conclusion
The EU’s trade policy is throwing Croatia into the ring with boxing champions, while we’re wearing park gloves. If we don’t wake up and act fast, domestic producers will be destroyed, and we’ll be left with empty plates and imported goods.
What do you think? Can Croatia withstand this blow, or are we doomed? Share your thoughts, let’s see who’s on which side in this trade war!
Key facts:
- EU is reducing dependence on the US and turning to Asia and Latin America.
- Mercosur countries have significantly more favorable production conditions.
- Croatian agricultural productivity is only 32% of the German average.
- Potential imports from Mercosur could destroy domestic producers of meat, sugar, and cereals.
- Urgent reforms and modernization of the sector are needed.
Source: HUP, Index.hr, Jutarnji.hr, Večernji.hr
