Hungary is doing everything in its power to prevent the provisional entry into force of the free trade agreement between the European Union and the Mercosur countries, Agriculture Minister István Nagy said on Monday evening in Brussels. He also touched on the issue of the EU’s Common Agricultural Policy (CAP), confirming that Hungary insists on more resources being allocated to the sector.
The minister stressed that they would continue to fight to prevent European Commission President Ursula von der Leyen from realizing her intention to make the agreement a reality. He believes that serious mistakes were made during the conclusion of the agreement, and he called it unacceptable that the Commission President signed the document without parliamentary approval. He recalled that last week the European Parliament referred the matter to the Court of Justice of the European Union to examine whether the agreement contains sufficient safeguards to protect European farmers and whether the signing was lawful.
“It is completely irregular for this agreement to enter into force and be valid,” said the politician, adding that Hungary is looking for allies to prevent its provisional application. He emphasized that it is good news that Romania is expected to join the member states opposing the agreement, which could once again make it possible to form a blocking minority.
He emphasized that, in addition to the Mercosur agreement, the effects of the free trade agreement between Ukraine and the European Union also seriously affect “border member states”, as cheap agricultural products arrive via short transport routes and exert significant market pressure on local farmers. The minister argued that no adequate protective measures are in place in Ukraine, while the situation for farmers could be further exacerbated by plans to reduce funding for the Common Agricultural Policy in the EU budget after 2027.
Minister Nagy confirmed that
Hungary insists on a separate budget for the Common Agricultural Policy and on providing more resources for the sector, because agriculture and food supply are strategic and national security issues.
The politician also reported that he had held talks with German counterpart Alois Reiner on the future of the Common Agricultural Policy, the possible reform of the support system, and reducing the burden on farmers imposed by the deforestation regulation. He emphasized that Hungary will continue to stand up for the interests of Hungarian farmers because “no one can risk” European food production.
I have had a discussion with Alois Rainer, German Federal Minister of Agriculture, Food and Regional Identity about the future of the Common Agricultural Policy, the land-based support and the anti-deforestation regulation. pic.twitter.com/TvICy1yckD
— Dr Nagy István (@DrNagyIstvn1) January 26, 2026
Speaking about the milk crisis, the Hungarian Agriculture Minister said that the situation had arisen because Chinese exports of European dairy products had stopped, meaning that cheese and butter could not be transported in sufficient quantities from the European Union to China. This had led to overproduction and product accumulation, that in turn had caused a drastic drop in purchase prices.
The minister noted that the purchase price of milk, which was around 50 cents, has now fallen to 20 cents, causing a serious crisis for farmers. “We are waiting for a solution,” he said, adding that
not only Hungary has raised its voice on the issue, but several other member states have joined in, and together they are putting strong pressure on the European Commission.
István Nagy said that Hungary has made proposals to EU decision-makers and is urging them to open up private storage for butter and cheese. The minister is convinced this would allow a certain amount of product to be temporarily withdrawn from the market, that would help restore normal trade in dairy products.
He emphasized that they also consider it an important form of support for farmers to receive assistance from the agricultural fund to help them through this difficult period.
Via MTI, Featured image: Facebook/Nagy István
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