Although the EU–Mercosur trade agreement has not yet officially entered into force, Romania’s food industry is already feeling the effects of a market preparing for much more aggressive competition in both agricultural raw materials and processed products.

Romania has been among the countries requesting additional safeguards in Brussels. In January 2026, Romanian authorities called for the introduction of automatic protection mechanisms in case imports increase by more than 5% or if domestic prices fall by more than 5% compared to the average of the past three years.

The stakes are particularly high for sensitive sectors.

According to the European Commission, the agreement would allow significant additional volumes of beef, poultry, sugar, corn, and soy from Brazil, Argentina, Uruguay, and Paraguay to enter the EU market — countries with substantially lower production costs than those in Europe.

For Romania, the impact may be indirect, but severe.

Data from the National Institute of Statistics (INS) shows that Romania already imports large quantities of processed agri-food products, while continuing to export predominantly agricultural raw materials.

The country’s agri-food trade deficit has exceeded €1 billion annually in recent years, and local processors warn that price pressure will intensify further.

The meat sector is among the most vulnerable.

Romanian pork producers are already affected by African Swine Fever, while the poultry sector is facing increasingly tight margins.

The sugar industry is also exposed.

Romania now has only a few operational processing units left after the closure of several factories in recent years.

Representatives of LAPAR warn that Romania is one of the most exposed agricultural economies in the EU, accounting for more than 33% of all European farms and having a rural population exceeding 45%.

Paradoxically, consumers may benefit from lower prices in the short term, but the local industry risks losing market share precisely at a time when production costs remain high.

(Photo: Magnific)