Politis

Cyprus Did Not Conduct Impact Assessment for Mercosur, Minister Reveals

Published January 20, 2026, 12:40
Cyprus Did Not Conduct Impact Assessment for Mercosur, Minister Reveals

The Minister of Energy, Commerce and Industry, Michalis Damianou, informed the House Agriculture Committee that no impact assessment was conducted by any Cypriot ministry regarding the Mercosur agreement. This is attributed to the small trade balance with Mercosur countries and the limited expected impact on the agricultural sector, beyond potential export opportunities in other areas. The Minister emphasized that the EU has conducted relevant studies and that the agreement includes clauses to protect the agricultural sector. Members of Parliament expressed concerns about unfair competition that Cypriot producers might face due to lower labor costs and different pesticide standards in Latin America. They also inquired about the specific exemptions secured by Cyprus, as Greece did with 21 products, and the future of halloumi cheese. The Minister responded that the agreement would benefit consumers through lower tariffs and offer opportunities for the shipping, pharmaceutical, and agricultural sectors. He stressed that the agreement would be implemented regardless of Cyprus's position. Green Party MP Charalambos Theopemptou pointed out that other EU countries, such as Ireland, Belgium, the Netherlands, and Austria, have already conducted impact assessments, while AKEL MP Giannakis Gavriel questioned the fairness of the competition and requested clarification on the exemptions. Other MPs expressed doubts about the benefits of the agreement for Cyprus, given the small size of its economy and limited resources.