Is the Mercosur Deal a Threat to Madeira’s Banana Industry?

Is the Mercosur Deal a Threat to Madeira’s Banana Industry?

Concerns have arisen over the potential impact of the Mercosur-EU trade agreement on Madeira’s banana industry. Officials warn that cheaper South American bananas could threaten local farmers' survival in the European market.

Concerns Raised Over Impact on Local Banana Farmers

On February 4, 2025, Rafaela Fernandes, Madeira’s Secretary for Regional Agriculture, warned that the Mercosur agreement could hurt the island’s banana industry. She shared these concerns during a visit to Gesba, the company that manages banana production in Madeira.

Two Main Risks for Madeira’s Banana Sector

Fernandes identified two major risks linked to the Mercosur deal. First, she raised concerns about food safety, especially the use and the lack of control of pesticides in bananas grown in Latin American countries. Second, she warned that South American bananas could flood the European market at much lower prices, due to cheaper production costs in those countries. This could create unfair competition for local farmers in Madeira, where production is more expensive.

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South American Bananas Could Take Over European Market

Fernandes also expressed fear that an influx of South American bananas could make it harder for local producers to compete. With lower production costs in Latin America, South American bananas could be sold at much cheaper prices in Europe, making it difficult for Madeira’s banana farmers to survive in the market.

Lawmakers Hope for Protection for Madeira’s Bananas

Emília Cerqueira, the head of the Parliamentary Commission for Agriculture and Fisheries, responded to Fernandes’ concerns, saying she was confident that steps would be taken to protect Madeira’s banana industry. While Cerqueira acknowledged that the Mercosur deal was likely to be approved, she assured that special protections would be put in place for Madeira’s bananas, as well as for other products from outermost regions in Europe.

Sources:

Diário de Notícias da Madeira
Diário de Notícias da Madeira

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