**BRUSSELS/NICOSIA** – The European Council's recent endorsement of a sweeping trade agreement with the Mercosur bloc, slated to forge the world's largest free trade zone encompassing over 700 million people, has cast a long shadow of apprehension over local producers in Cyprus. While the pact promises to dismantle tariffs on more than 90% of bilateral trade, concerns are mounting that the influx of cheaper goods from South America could jeopardise the livelihoods of Cypriot farmers and artisans, particularly in light of halloumi cheese's exclusion from protected geographical indication (PGI) status within the deal.
The momentous decision, approved by EU ministers just prior to publication, is poised to fundamentally reshape transatlantic commerce. European Commission President Ursula von der Leyen was expected to formally cement the agreement in Paraguay the following day. This landmark accord aims to foster unprecedented economic integration, yet the tangible implications for smaller economies like Cyprus are far from universally welcomed.
In the Paphos district, a region synonymous with agricultural vitality, the sentiment is decidedly mixed. Nikolas Theodosiou, deputy mayor of Kissonerga village, voiced a palpable anxiety shared by many in the local farming community. "It must be ensured that the local producers are protected when the deal enters effect, so that they are not negatively affected by competition and cheaper products being imported from Latin America," he stated, articulating a widespread fear of being outcompeted by more cost-effective imports, particularly concerning products like bananas.
The exclusion of halloumi from the PGI list has become a focal point of this unease. While the Cypriot Ministry of Agriculture has issued communications highlighting the agreement's advantages, including the safeguarding of PGI products, the omission of the beloved cheese has sparked considerable debate. Officials explained that halloumi was not on the PGI list at the time of its compilation, though they acknowledged that such lists are subject to future amendments. This bureaucratic oversight, however, leaves a significant cultural and economic icon vulnerable.
Despite the halloumi conundrum, the deal does extend protection to a range of other distinctively Cypriot products. These include "Yeroşibu lokumu," local wines originating from Limassol and Paphos, the ancient Commandaria wine, ouzo, and zivania. These inclusions offer a degree of reassurance, demonstrating a commitment to preserving the island's gastronomic heritage.
The path to this agreement has been fraught with internal EU dissent. While Cypriot President Nikos Christodoulides lauded the decision as a "historic milestone" and a testament to an "open, robust trade policy," significant opposition emanated from several member states, including Austria, France, Hungary, and Poland, with Belgium abstaining. Italy, which had previously voiced reservations, ultimately voted in favour. These divergent stances underscore the complex balancing act involved in forging such extensive trade pacts.
For Cyprus, the immediate challenge lies in navigating the practical ramifications of increased competition. The safeguard clauses embedded within the agreement, which permit the EU to suspend tariff-free imports of specific goods if European producers face undue pressure, offer a potential lifeline. However, the efficacy of these protective mechanisms in shielding vulnerable sectors from the full force of market liberalisation remains to be seen. As the deal transitions from ratification to implementation, all eyes will be on how effectively Cyprus can leverage its protected products and advocate for its local industries in this new, expansive economic landscape.