EU advances Mercosur trade deal as French resistance eases

Wednesday 03 September 2025 - 13:45

By: Dakir Madiha

EU advances Mercosur trade deal as French resistance eases

The European Commission has formally submitted the EU-Mercosur trade agreement for ratification, signaling a critical step in the world's largest proposed free trade pact. This development comes amidst signs of softening opposition from France, traditionally one of the deal’s most vocal critics. French Trade Minister Laurent Saint-Martin recently acknowledged that the agreement is "moving in the right direction," hinting that Paris may no longer block its ratification after years of resistance.

New safeguards to address French agricultural concerns

To secure France’s support, the European Commission introduced additional safeguard mechanisms to address concerns over EU farmers' competitiveness. Under the new provisions, Mercosur’s preferential access for sensitive agricultural products, such as beef, can be suspended if imports rise by over 10% or if prices drop by the same margin in any EU member state. The Commission also committed to implementing preliminary measures to restrict imports within three weeks of receiving a formal complaint.

These safeguards mark a significant shift from France’s previous stance, which deemed the initial agreement "unacceptable." French officials had long argued that exposing European farmers to competition from South American producers, who often operate under less stringent environmental and food safety standards, would create unfair market conditions.

Poland concedes defeat in opposition coalition

Poland, another staunch opponent of the agreement alongside France and Italy, has acknowledged its inability to block the deal. Polish Prime Minister Donald Tusk admitted that the coalition of opposing countries no longer has the numbers to form a blocking minority. This admission reflects a shift in the EU’s internal dynamics, as the Commission’s tailored concessions have succeeded in maintaining broad support among member states like Germany and Spain, which view the deal as vital for accessing South American markets and reducing reliance on China.

Strategic importance amid global trade tensions

The EU’s push for ratification coincides with efforts to strengthen trade ties in the wake of renewed tensions with the United States. If approved, the agreement would create a free trade zone encompassing over 700 million consumers across the EU and Mercosur countries, Argentina, Brazil, Paraguay and Uruguay.

EU officials estimate the deal could boost annual exports to Mercosur by up to 39%, amounting to approximately €49 billion, while supporting over 440,000 European jobs. The automotive industry is poised to benefit significantly, with current 35% tariffs on EU vehicle exports to Mercosur set to be eliminated.

Next steps toward ratification

The agreement must now gain approval from the European Parliament and a qualified majority of EU member states, 15 out of 27 countries representing 65% of the EU's population. With France's opposition softening and Poland conceding defeat, the path to ratification appears increasingly clear. However, protests from European farmers remain a persistent challenge, underscoring the agreement’s contentious nature.