Breeders fear EU-Mercosur pact will affect Belgium business

A Limousin breed cow is held by the bridle after a competition during the Libramont outdoor agricultural fair in Libramont, Belgium. (AFP)
Updated 29 July 2019

Breeders fear EU-Mercosur pact will affect Belgium business

  • Farmers at Libramont are unconvinced and pessimistic for the future despite the impressive size and quality of their livestock, proudly on display
  • Farmers to face competition from the vast ranches of South America

LIBRAMONT, BELGIUM: The Libramont agricultural show is the highlight of the year for Belgium’s proud beef industry, but this year even the sunny skies of western Europe’s record heatwave couldn’t chase one looming shadow away.

The breeders parading their famous Belgian Blue beef cattle will soon face competition from the vast ranches of the South American pampas.
Resistance is building among some European farmers against a draft trade deal reached by EU officials with the Mercosur group — Argentina, Brazil, Paraguay and Uruguay.
After 20 years of negotiations, officials in Brussels — 140 kilometers (80 miles) northwest of the pastures of Ardennes — are very pleased with the accord that could save European exporters €4 billion ($4.5 billion) in duties per year.
But, as member states decide whether to ratify and implement the deal, EU farmers and environmentalists are less excited.
Beef breeders in particular say that EU quality standards are higher than those in Latin America, and fear a flood of cheap meat will drive them to the wall.
“We are already close to over-production in all of Europe and in Wallonia as well ... The last thing we need is Brazilian meat, especially when we see the conditions in which it is produced,” warns Hughes Falys, beef producer and farmers’ union spokesman.
“Mercosur isn’t a case of ‘Yes, maybe’ or ‘Yes, if’. Mercosur is ‘No!’,” declares the Wallonia regional Farming Minister Rene Collin to loud applause.
Collin might not be a regular on the G20 summit circuit or at WTO get-togethers. But the world’s trade negotiators may find they have to listen to the French-speaking Belgian region of Wallonia, home to only 3.6 million people.
In 2016, the region held up Belgium’s signature of the CETA trade deal between the entire EU and Canada, and it could make life complicated for Brussels once again.
“We made them evolve CETA. We made them put important safeguard clauses in there. We’ll be just as vigilant when it comes to Mercosur,” Collin told AFP at the four-day fair and trade show.

BACKGROUND

• Resistance is building among some European farmers against a draft deal reached by EU officials with the Mercosur group.

• After 20 years of negotiations, officials in Brussels are very pleased with the accord that could save European exporters €4 billion in duties per year.

• But, as member states decide whether to ratify and implement the deal, EU farmers and environmentalists are less excited.

And he warns that the regional Parliament and Belgium’s members of the European Parliament could vote against ratification.
The European Commission has tried to reassure farmers, so far to no avail.
The deal contains two big promises to the sector: Increased beef imports will be limited to 99,000 tons a year, and €1 billion will be set aside for European farmers.
Farmers at Libramont are unconvinced and pessimistic for the future despite the impressive size and quality of their livestock, proudly on display.
“Lots of older farmers find it difficult to sell up, especially livestock farmers,” says Beatrice Ghyselen, a 61-year-old farmer from Vedrin, outside the Wallon capital Namur.


Gulf Marine CEO quits after review sparks profit warning

Updated 22 August 2019

Gulf Marine CEO quits after review sparks profit warning

  • Tensions in the Arabian Gulf, a worrisome global growth outlook and uncertainty over oil prices have recently dampened investor confidence

DUBAI: Gulf Marine Services said on Wednesday Chief Executive Officer Duncan Anderson has resigned as the oilfield industry contractor warned a reassessment of its ships and contracts showed profit would fall this year, kicking its shares 12 percent down.

The Abu Dhabi-based offshore services specialist said a review by new finance chief Stephen Kersley of its large E-class vessels operating in Northwest Europe and the Middle East pointed to 2019 core earnings of between $45 million and $48 million, below $58 million that it reported last year.

A source familiar with the matter told Reuters that Anderson, who has served as CEO for 12 years, was asked to step down. Anderson could not be reached for comment.

The company, which in the past predominantly operated in the UAE, expanded operations and deployed large vessels in the North Sea and Saudi Arabia nine years ago and listed its shares in London in 2014.

Tensions in the Arabian Gulf, a worrisome global growth outlook and uncertainty over oil prices have recently dampened investor confidence.

The North Sea has seen a revival in production in recent years due to new fields coming on line and improved performance by operators following the 2014 oil price collapse.

Still, the basin’s production is expected to decline over the next decade, according to Britain’s Oil and Gas Authority.

“(The CFO’s) review has coincided with a pause in renewables-related self-propelled self-elevating support vessels activity in the North Sea, which will impact several of the higher day-rate E-Class vessels,” Investec wrote in a note.

Gulf Marine appointed industry veteran Kersley as chief financial officer in late May as it sought to halt a slide which has seen the company’s shares fall nearly 80 percent last year and another 23 percent so far this year.

The company said market conditions remained challenging and that it was still in talks with its financial advisors regarding a new capital structure.

“Management, the new board and the group’s advisors, have been in negotiation with the group’s banks on resetting its capital structure and progress has been made,” it said in a statement.

Last year, Gulf Marine said contracts were delayed into 2019 as the company was seen to be in breach of certain banking covenants at the end of 2018.

The company said it was still in talks with its banks and individual lenders with hopes of getting a waiver or an agreement to amend the concerned covenants.