STAVROS AFIONIS
The Hague (April 2013)
Presentation Outline

The EU – Brazil partnership

Legal and trade issues

Indirect land-use change

Highly biodiverse grasslands

Trade barriers
 Conclusions
www.cccep.ac.uk
The EU’s partnerships
The 2003 European Security Strategy (ESS)
Existing partners
United States
Japan
Canada
Brazil
China
India
Mexico
Russia
South Africa
Potential partners
Egypt
Israel
Indonesia
Pakistan
Ukraine
South Korea
The EU – Brazil partnership
 Established in 2007

1st
a.) Trade
b.) Environment
Joint Action Plan (JAP) in 2008
 2nd JAP in 2011 (to last until 2014)
 Over 20 sector dialogues
1) Energy
2) Environment and Climate Change
3) Information Society
4) Maritime Transport
5) Satellite Navigation - “Galileo”
6) Science and Technology
7) Culture
8) Education
www.cccep.ac.uk
Summits
2007
2008
2009
2010
2011
2013
Lisbon
Rio de Janeiro
Stockholm
Brasilia
Brussels
Brasilia
The EU – Brazil partnership
 Agenda dominated by trade issues

Brazil is the EU’s 10th trading partner (2.2%)

EU is Brazil’s main trading partner (22%)
 Main issues
A. EU – MERCOSUR trade agreement

Negotiations collapsed in 2004, re-launched in 2010
B. Liberalization of EU agricultural market

Negotiations in progress (WTO Doha Round)
www.cccep.ac.uk
EU and biofuels
A. Directives
Biofuels Directive (2003)
Targets
Renewable Energy Directive (2009)
a.) 2% by 2005
b.) 5.75% by 2010
10% by 2020
B. Sustainability criteria.
1. GHG emission savings of at least 35% (rising to 50% in 2017)
2. Feedstock not to be derived from land with high biodiversity value
3. Feedstock is not to be derived from land with a high carbon stock
www.cccep.ac.uk
EU, Brazil and biofuels
Issues
 Indirect land-use change (iLUC)
 Definition of “highly biodiverse grasslands”
 Trade barriers
www.cccep.ac.uk
Indirect land-use change (iLUC)
Source: Fehrenbach et al, 2008. “Criteria for a Sustainable Use of Bioenergy on a Global Scale” UBA-FB Report 206/41/112, p. 51.
www.cccep.ac.uk
Indirect land-use change (iLUC)
• Brazil acknowledges scientific consensus on iLUC
• Science has progressed, but models still in infancy
• More science needed – Brazil satisfied with 2nd draft
• The 5% cap is inadequate
• What does Brazil propose?
• US process much more transparent
www.cccep.ac.uk
Highly biodiverse grasslands
2nd sustainability criterion
a) Primary forest
b) Natural protected area
c) Highly biodiverse grassland
 Definition expected since 2010
 Vital issue for Brazil
Brazil to expand
sugarcane plantations
in pasture land
Highly biodiverse grasslands
• Concept invented as a result of an intra-EU compromise
• Definition a complicated issue – several drafts rejected
• Agreement possibly reached this month
• Why has it taken so long:
 Challenging task
 Intra-EU repercussions
 Brazil surprised…
www.cccep.ac.uk
Highly biodiverse grasslands
Why is this so important to Brazil?
 Agriculture expands in pastures
• About 70% of sugarcane plantations
 Compliance could be quite costly
• Natural vs. non-natural grasslands
• Need for in situ inspections
 Brazil wants the CBD to come up with a definition
www.cccep.ac.uk
Trade barriers
Tariffs and subsidies
 EU biofuels protectionism
supports
uneconomical & energy
inefficient production
 Discussions in several fora
a)
MERCOSUR
b) WTO
 Barriers bound to be abolished???
www.cccep.ac.uk
Concluding remarks
 Partnership has revolutionised bilateral relations
 Focus is on trade
 iLUC, grasslands and trade barriers top the agenda
Prospects do not appear promising
www.cccep.ac.uk