After an astounding 25 years of negotiations and recent protests from farmers across Europe, the EU has officially advanced their trade deal with the South American Mercosure trade bloc, which includes Brazil, Argentina, Paraguay, Uruguay, and other associate countries in Latin America. On January 9th, The Council of the European Union authorised the signature of two agreements between the EU and Mercosur, the EU-Mercosur Partnership Agreement (EMPA) and the Interim Trade Agreement (iTA). The agreements are yet to be concluded, still requiring consent from the European Parliament. For the deal to be enforced, the EMPA will need to be ratified by all EU member states.
The EMPA serves to build and develop complete cooperation between the EU and Mercosur into one framework. After Friday’s decision, economic and political ties are set to be strengthened over time, until full ratification from the EU. As for the iTA, its purpose is to reduce current tariffs, and open access between the two intergovernmental organizations.
Opposing perspectives
France, Poland, Austria, Ireland, and Hungary have made their opposition clear, but Belgium has decided to abstain. Von Der Leyen managed to secure support from Italy, after Giorgia Meloni’s opposition back in December forced the deal to be delayed until now.
Spain and Germany have been major supporters of the deal. Friedrich Merz has commended the deal, stating,
“The approval of the EU-Mercosur Agreement is a milestone in European trade policy and an important signal of our strategic sovereignty and capacity to act”
The deal is a landmark for trade, establishing a free trade region encompassing over 700 million people and nearly a quarter of global GDP. Brussels also views the deal as a geopolitical victory, strengthening economic ties with Latin America to counter China’s increasing trade with the region.
Brazil’s Lula da Silva has also voiced his support for the deal, posting the following on X,
“In an international context of growing protectionism and unilateralism, this agreement is a vote in favor of international trade as the engine of economic growth, with advantages for both blocs”
The EU-Mercosur deal stands out, as it is one of the biggest recent trade agreements which does not include the US. Demonstrating the world potentially moving forward after the ‘Trump Tariffs’.
Public backlash
This past week has been filled with protests against the deal, with Friday proving no different. Farmers have blocked off roads and raised their voices to demonstrate their opposition to the deal. International farmers group, Via Campesina has criticised the deal, stating that it goes against fair food prices, disregards food sovereignty, and threatens the livelihoods of Europeans living in rural areas. They stated,
“The EU should prioritise food sovereignty and promote socially responsible agriculture, with more farmers, moving towards a sustainable and resilient model, rather than imposing an obsolete free trade agreement.”
Via Campesina has also been critical of the advancement of the deal despite no general consensus of EU member states, contesting that it “weakens the EU.”
The Council has attempted to reassure the public by stating that the European Commission will be empowered to implement safeguards in the case of surges in imports for crucial agricultural products. The purpose of the safeguards is to provide protections for EU farmers and those of the agricultural sector until the full legislative framework is adopted.
Victory for the free market?
Contention over the deal is high, with many Europeans advocating for protections and safety nets for the European agricultural sector, fearing that the market may be undercut by cheaper goods from Latin America, there remain advocates for the agreement. Flemish minister-president Matthias Diependaele has stated that the Mercosur deal will strengthen the economy of Flanders, stating,
“If we want to maintain our prosperity, we need free trade. That is precisely why I have always been a strong supporter of a Mercosur trade agreement.”
Critics of the deal have highlighted that South American standards are not up to par with Europe, citing the treatment of workers and deforestation as major threats to the EU market. The Climate Action Network has corroborated this position, stating that deforestation would worsen and human rights are at a much higher risk.
