The case of Chile: how the agreement with the European Union favors fruit producers

The specialist explained that the agreement between the European Union and Mercosur offers two advantages to local producers: a reduction in cold costs and a gain in sales weeks, which generates a greater potential for earlier varieties.

In this sense, Giacinti compared this situation to the agreement signed in 2003 by Chile and the European bloc, which led to a drop in market concentration, an increase in 54% of exporting companies and importers increased from 443 to 587.

For fruits, "the only window without tariffs is between April and June, the harvest takes place in January, so the few buyers keep the fruits in a refrigerator at the customs (which is a cost) and lose weeks of sale, "said the president. expert

Therefore, the agreement allows earlier varieties to have lower costs, since they do not require conservation, and have greater sales potential, while the latter, which constitute the best price, benefit from a reduction of tariffs.

"The agreement on fruit work, although it must be validated by the member countries of the European Union and Mercosur," added Giacinti, adding that it could take a few months at two, but "the will is to do it as soon as possible."

For the specialist, this agreement also generates progress in areas such as the cherry, where tariffs are removed or wine that will expand the export quota.

"This EU-Mercosur agreement aims to eliminate asymmetries and to put the chances of competition on an equal footing," Giacinti added. and average producers.

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