EU Greenlights Mercosur Pact After 25 Years

After more than 20 years of negotiations, the EU has approved a landmark trade agreement with Mercosur, moving closer to establishing the world’s largest free trade zone. Protests by European farmers, who recently tried to block the deal, continue as the agreement still requires approval from the European Parliament.

At a Brussels meeting of ambassadors, the European Union’s 27 member states reached a qualified majority despite opposition from France, Poland, Ireland, and Hungary. “This is a major step for European trade policy and a strong signal of our strategic sovereignty,” said German Chancellor Friedrich Merz, a leading advocate of the deal.

Following the vote, European Commission President Ursula von der Leyen will travel to Paraguay to sign the agreement on Jan. 12. Even after the Asunción ceremony, the deal will not take immediate effect, as European Parliament approval is required, a process that could take several weeks. The outcome remains uncertain, with around 150 MEPs threatening legal action to block the pact.

Negotiations with Argentina, Brazil, Uruguay, and Paraguay have been ongoing since 1999. Once implemented, the agreement will create a free trade zone serving over 700 million consumers and remove tariffs on more than 90% of bilateral trade.

European farmers remain concerned, however, about a surge of South American products such as meat, rice, honey, and soy, while European exports gain access to Mercosur markets. Critics, led by France, fear the EU market could be disrupted by imports produced under less stringent standards. 

Supporters, including Spain and Germany, argue the pact will diversify trade opportunities for an EU facing competition from China and US tariffs. Italy, which previously opposed the agreement alongside France, shifted its stance this week. Italian Prime Minister Giorgia Meloni praised the new safeguards protecting the agricultural sector.

EU Measures to Protect Farmers
To address concerns over tariff reductions, the European Commission introduced a series of measures in recent months. “Agriculture has been at the center of negotiations, and we have worked intensively,” said Commission Spokesperson Olof Gill.

Key measures include guarantees for meat, poultry, rice, honey, eggs, and ethanol, limits on duty-free imports, and interventions if markets are destabilized. The Commission also pledged to investigate cases where Mercosur products are priced at least 8% below EU equivalents and imports increase by more than 8%.

Additional legislation addresses pesticide residues in imports, which is a frequent concern for EU farmers. This week, the Commission banned three substances: thiophanate-methyl, carbendazim, and benomyl, mainly affecting citrus, mangoes, and papayas. France has temporarily blocked certain South American products containing pesticides prohibited in the EU.

Despite these safeguards, protests continue. In Paris, tractors remain stationed at city entrances, while in Warsaw, roughly 1,000 farmers marched through the city center. “This will destroy agriculture in Poland,” warned farmer Janusz Sampolski, adding that the country may become reliant on foreign supply chains.