Representatives of governments, the private sector, international organisations, producers and civil society organisations from MERCOSUR and the European Union participated in the meeting "MERCOSUR-EU soybean dialogue: strengthening a strategic value chain", which took place on 20 and 21 May in the cities of Buenos Aires and Rosario.

The event was organised by the AL-INVEST Verde programme, the Sustainable Agriculture for Forest Ecosystems (SAFE) Programme, the Zero Deforestation Project and the German-Argentine Dialogue on Sustainable Agricultural Innovations (DIALOGUE).DAAIAS). During the two days, spaces for exchange were generated around the challenges and opportunities posed by the new European regulation on deforestation-free products (EUDR) and its impact on the soy value chain.

Authorities emphasised commitment to a joint transition

On the first day, the event took place at the Buenos Aires Grain Exchange and was attended by high-level authorities. The opening was in charge of Manuel Chiappe, Undersecretary of Agricultural Production and Forestry of the Secretariat of Agriculture, Livestock and Fisheries of Argentina; Eran Nagan, Deputy Ambassador of the Delegation of the European Union in Argentina and Minister Peter Neven, Head of the Department of Economic Affairs of the German Embassy in Argentina.

In his intervention, Manuel Chiappe he underlined: "Argentina plays a leading role in global food production, based on efficient production systems with a low environmental footprint. For this reason, it prioritises food security, always reaffirming its commitment to sustainability in its three dimensions. With regard to the regulation, it has always been very critical in questioning it in different forums, maintaining its support for free trade based on clear, equitable rules and backed by scientific evidence.", added.

For its part, Eran Nagan stressed: "The EUDR is a common goal for the good of the planet, the sector and consumers. Over the years, the MERCOSUR countries and the EU have established very efficient marketing chains for soya, an important input for animal production in Europe, based on long-standing relationships of trust, as well as quality and health guarantees. Spaces such as this one allow for direct exchange between the actors, to consolidate these bases, strengthening their sustainability, resilience and fluid coordination between operators in the two regions".

In turn, Peter Nevenhe pointed out: “In a context marked by growing geopolitical tensions and a resurgence of protectionism at the global level, the MERCOSUR-European Union Association Agreement, reached in December last year, represents a key impulse to strengthen trade and investment relations between our countries, thus contributing to the sustainability of production and the welfare of our peoples.". He also expressed that the new German Federal Government reaffirms its full commitment to the agreement and its support for an early ratification.

Soybean trade and the EUDR: a European vision

Among the first technical presentations, the participation of the following stood out Elsa LavalThe EU's soybean trade between MERCOSUR and the EU was discussed by the Deputy Head of Unit of the European Commission's Directorate-General for Agriculture and Rural Development (DG AGRI): "The EU and Mercosur are long-term trading partners and we must work together to achieve a common transition to a sustainable system. Trade in soy, due to its strategic importance, is a powerful lever for this transition. The European regulation on deforestation-free products and the EU-Mercosur Association Agreement are important steps in this transition.

Next, Emanuele PittoThe EU Environment Directorate General (DG Environment) of the European Commission presented the state of play of the EUDR regulation, focusing on the technical aspects of implementation and the challenges shared with producer countries.

The Economist Sebastian Senesi, director of the Agribusiness and Food Programme of the University of Buenos Aires, gave a regional perspective on the soybean market in Mercosur, its structural characteristics and opportunities for improvement in information and monitoring systems.

This was followed by a panel with European operators and competent authorities, in which representatives from the following organisations took part COCERAL, FEFAC, CESFAC, ANACER and ASFACtogether with technical authorities such as Hans Peter LampenHead of Division for North and South America, Africa, Asia and Oceania at the German Federal Ministry for Agriculture, Food and Regional Identity, and Rosa AltisentDirector General of Agriculture and Livestock of Catalonia, EUDR competent authority in this region. These actors shared their perspectives on the implementation of the EU Regulation and its impact on agri-food trade with South America.

Traceability, adaptation and regional solutions

Throughout the technical panels, national EUDR adaptation initiatives were presented with a focus on traceability, monitoring and digital tools with cases from Argentina (VISEC and Tracestory), Brazil (Selo Verde and AgroBrasil + Sustentável), Paraguay (RETSA - Registro de Establecimientos con Trazabilidad Socioambiental - and SISE) and Uruguay (Plataforma Nacional de Cadenas Libres de Deforestación).

In the afternoon, the conclusions of the Iguazú Summit 2024 were taken up in a working session entitled "Closing the gaps", coordinated by Marnix Doorn, Team Leader of the DAAIAS project. The dynamics allowed to collectively deepen in new key issues to guide the next steps towards the implementation of the EUDR: legal due diligence and identification of applicable legislation; the role of public goods and state endorsement to facilitate compliance; the challenges to avoid the exclusion of producers from the technical and administrative requirements of the regulation; and the positioning of the country against the European reporting and risk rating system.

Technical visits in Rosario

The second day included a field visit for participants to industrial plants and port terminals in the province of Santa Fe, where the reception, processing and shipment of soybeans and by-products takes place. Activities continued at the Rosario Stock Exchange (BCR), where a demonstration of one of the systems in operation in Argentina - VISEC's monitoring, reporting and verification (MRV) system - was given, followed by a technical panel on operational solutions to respond to EUDR requirements in Mercosur countries.

Towards strengthened EU-Mercosur sustainability cooperation

The closing of the activities included systematisation workshops that allowed a series of technical and political recommendations to be agreed upon in order to advance in a reinforced cooperation between the European Union and MERCOSUR. Among the proposals were the need to strengthen traceability systems, expand regional technical assistance, promote financing schemes for the transition and develop more innovative and adaptive regulatory frameworks. The relevance of guaranteeing the inclusion of smaller producers and fostering regional coordination to facilitate access to technological tools and global markets was also underlined.

About AL-INVEST Verde

AL-INVEST Verde is a European Union (EU) programme whose main objective is to promote sustainable growth and job creation in Latin America by supporting the transition towards a low-carbon, resource-efficient and more circular economy. Through Component 2, led by FIIAPP in consortium with IILA, the programme provides assistance for strengthening public policy and multi-stakeholder dialogues on sustainable agricultural and value chains, environmental and labour standards, as well as sustainable trade and economic policy and regulatory frameworks.