EU approves landmark Mercosur trade deal despite farmer protests

Friday 09 - 13:20

By: Dakir Madiha

EU approves landmark Mercosur trade deal despite farmer protests

EU member states greenlit on Friday the bloc's largest-ever free trade agreement with South America's Mercosur nations, capping over 25 years of talks and reshaping global trade dynamics despite fierce pushback from major agricultural producers.

The 27 member states' ambassadors approved the deal by qualified majority, with at least 15 countries representing 65% of the EU population voting in favor. Commission President Ursula von der Leyen is set to travel to Paraguay on January 12 for the official signing with Argentina, Brazil, Paraguay, and Uruguay.

The breakthrough followed Italy's shift from opposition to support after European Commission concessions, including €45 billion in advance funding for farmers and a pause on border carbon taxes for fertilizers. France, Poland, Hungary, Ireland, and Austria voted against but failed to form a blocking minority, which requires at least four states accounting for 35% of the EU population.

The vote capped intense farmer protests across the continent. On Thursday, about 100 tractors rolled into Paris, parking near the Eiffel Tower and Arc de Triomphe in defiance. French President Emmanuel Macron announced France's opposing vote, calling the pact an "agreement from another time" that endangers "essential agricultural sectors for our food sovereignty" for a mere 0.05% projected GDP boost by 2040.

Similar demonstrations clogged highways in Greece, Spain, and Belgium, where farmers argued the deal exposes them to unfair competition from South American imports produced under laxer environmental and social standards. In Ireland, concerns escalated after hormone-treated Brazilian beef entered the EU food chain in December, prompting calls for government opposition.

The agreement eliminates €4 billion in EU export tariffs and removes duties on 91% of goods traded between the blocs. EU-Mercosur merchandise exchanges hit €111 billion in 2024, with EU exports led by machinery, chemicals, and transport equipment, while Mercosur focuses on agricultural products, minerals, pulp, and paper.

The European Parliament must still ratify the deal before it takes effect, with a vote expected in April or May. French Agriculture Minister Annie Genevard pledged to fight for its rejection in the EU assembly, where the outcome could prove tight.