The European Green Deal and its implications for Argentine agriculture: both a challenge and an opportunity
By Dr. Alexander Freier
The European Green Deal, as we discussed in the previous edition, is the most ambitious political, economic, and environmental transformation process in the recent history of the European Union. Adopted in 2019 with the goal of achieving climate neutrality by 2050, it cuts across all European productive sectors.
This week, we will take a closer look at one of the most sensitive chapters of this agenda: the impact on the agricultural sector. Not only because of the key role that agricultural production and food systems play in meeting climate goals, but also because of the direct impact that the new regulations will have on the EU's trade relations with third countries, particularly Argentina and, within it, strategic provinces such as Córdoba.
The Farm to Fork Strategy
The Farm to Fork Strategy plays a central role in the Green Deal. Presented by the European Commission in May 2020, it sets out an ambitious program for the comprehensive transformation of the food system, aimed at ensuring sustainable, healthy, and socially just practices.
Among the main objectives set for 2030 are: a 50% reduction in the use of chemical pesticides, a 50% reduction in nutrient losses (such as nitrogen and phosphorus), a 20% reduction in the use of fertilizers, and the expansion of organic agricultural land to at least 25% of the total. It also aims to halve the use of antimicrobials in animal and aquaculture production, along with the development of stricter nutritional and environmental labeling, the reduction of food waste, and the promotion of healthier eating habits among European consumers.
Direct relevance for Argentina
Although these goals are focused on the European domestic market, their effects transcend borders and directly affect countries that supply agricultural raw materials. Argentina, as one of the world's leading exporters of soybeans, beef, cereals, oilseeds, leather, and agro-industrial products, is naturally at the center of these regulatory changes.
In this context, the Regulation on Deforestation-Free Supply Chains (EUDR), approved in 2023, takes on particular relevance. This regulation requires that, once it comes into full force, all agricultural exports to the EU must provide reliable proof that their products do not come from areas deforested after December 31, 2020. Products such as soybeans, beef, coffee, cocoa, rubber, palm oil, and wood must have georeferenced traceability systems, backed by satellite monitoring and documentary certification, which implies additional costs and demanding regulatory compliance engineering.
The challenge for Argentina and the region
From Argentina's perspective, these requirements represent a double challenge. On the one hand, productive sectors, especially in areas of agricultural expansion such as the Gran Chaco, will have to accelerate adaptation and monitoring processes. But at the same time, the transformation offers a strategic opportunity: to reposition Argentina as a reliable supplier of sustainable food for demanding European markets.
Emerging technologies will play a decisive role in this process. Blockchain-based traceability systems, continuous satellite monitoring, IoT sensors in the field, and digital certification platforms will ensure the standards of transparency and reliability demanded by European consumers. This transformation not only strengthens access to the European market but also adds reputational value and expands commercial opportunities.
New opportunities for climate finance
Beyond traditional trade, these transformations open the door to increasingly dynamic complementary markets: climate finance and carbon capture mechanisms. Through carbon farming programs, actively promoted by the EU, the implementation of regenerative agricultural practices, the enrichment of organic soil, and the restoration of degraded ecosystems will enable the capture and certification of carbon emissions, which can then be monetized in international carbon credit markets. Argentina, due to its territorial scale, agroecological diversity, and technical know-how, is particularly well positioned to develop this type of project under international certification standards.
Mercosur–EU agreement negotiations under pressure
At the same time, progress on these environmental agendas has a direct impact on delays in the ratification of the Strategic Partnership Agreement between Mercosur and the EU. Although the final text was completed in 2023 after more than two decades of negotiations, its final approval faces political resistance in some European member states, especially France, which has expressed concerns related to agricultural competition, animal health, and South American environmental standards.
While European producer associations warn of possible unfair competition resulting from Mercosur's lower production costs, the governments of Brazil, Argentina, and Uruguay insist on the strategic need to consolidate this transatlantic alliance in a global context of growing protectionism and geopolitical tensions. Even within the EU itself, there is already debate about the possibility of enabling at least the trade chapter of the agreement through a qualified majority voting mechanism (splitting), allowing the veto of those countries that maintain objections to the political and environmental components to be circumvented.
For Argentina, Europe will continue to represent a high-quality and increasingly diversified market: it not only demands agricultural commodities, but also industrial inputs, more highly processed goods, and knowledge-based services.
Scientific and technological cooperation programs
In this context, particularly promising opportunities for cooperation are emerging in the scientific and technological spheres. Programs such as Horizon Europe or those promoted by the EU-LAC Foundation offer direct funding for bilateral applied research projects in agricultural biotechnology, digitization of production processes, climate resilience, biodiversity, and soil restoration. Argentine universities, research centers, technology firms, and consulting companies can actively access these programs, positioning themselves as preferred partners in Euro-Latin American cooperation.
The Córdoba case: a privileged platform
The province of Córdoba has particularly favorable conditions to capitalize on these opportunities. In addition to its traditional strength as an agricultural export hub, it has a robust scientific-academic ecosystem, applied research capabilities, and an emerging technological network. From Córdoba, public-private partnerships could be promoted for the development of blockchain traceability systems, digital certification platforms, precision agriculture pilots, and comprehensive carbon capture projects. Likewise, local universities offer academic capabilities to actively integrate into European collaborative research networks, generating scientific added value, skilled employment, and export diversification.
Conclusion
In short, the European Green Deal and the Farm to Fork strategy present Argentina with a strategic crossroads. Adapting to the new environmental standards will require investment, technical capabilities, and solid public-private synergies. But at the same time, it opens up historic opportunities to reposition Argentine agriculture as a reliable supplier of sustainable food, access new climate finance flows, and consolidate high value-added scientific-technological alliances with Europe. Those who understand the structural dimension of these changes today and act accordingly will be the protagonists of a more competitive, resilient, and global Argentine agriculture in the coming years.
Originally published in InfoClima.com.ar
