Farming groups in the EU have opposed a trade deal with South America’s Mercosur bloc, calling it “fundamentally unbalanced” and “flawed”.
The backlash came immediately after a qualified majority of EU member states voted on Friday (9 January) in favour of the trade accord with Brazil, Argentina, Paraguay and Uruguay.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
European Commission President Ursula von der Leyen said the blocs has “delivered a substantive and mutually beneficial deal” while the European Council said the agreement “offers tariff reductions and opens access to new markets for a wide range of goods and services”, arguing agriculture “will benefit from improved trade terms”.
However, in a statement issued the same day, Copa-Cogeca, representing EU farm organisations and agricultural cooperatives, said they were “united” in denouncing the deal “despite the latest adjustments to the additional safeguard measures”.
The farming lobby warned the agreement “erodes trust in European governance, democratic processes and parliamentary scrutiny at a time when institutional credibility is already under strain”.
Copa-Cogeca strongly criticised what it described as “the Council’s last-minute decision to withdraw the declaration guaranteeing no provisional implementation of the agreement before the European Parliament has the chance to have its say, despite past promises that this would not happen, is extremely concerning”.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe organisation said it would continue mobilising farmers against the accord.
According to the European Commission, it will create the “world’s biggest free trade zone”, covering a market of more than 700 million consumers.
The deal, originally agreed in 2019, has repeatedly stalled amid resistance from several EU countries.
A “political agreement” was reached between the parties in December 2024.
The European Dairy Association welcomed the member states’ move to approve the deal. “This represents a major breakthrough highlighting the EU’s trade ambitions the success of its negotiations, and will be sure to bring economic growth and resilience to Europe,” the EDA said.
Von der Leyen is scheduled to travel to Paraguay to sign the deal, which still requires ratification by the European Parliament.
She said the agreement “will increase prosperity and create incredible opportunities”, adding: “This deal marks a new era of trade and cooperation with our Mercosur partners.”
The EU is Mercosur’s second-largest trade partner, accounting for almost 17% of the bloc’s total trade in 2024. In that year, trade in goods between the two sides was worth over €111bn ($129.7bn).
At the core of the trade deal is a mutual reduction of import duties.
The EU will progressively remove tariffs on 92% of Mercosur exports up to ten years, while Mercosur will phase out duties on 91% of EU exports over 15 years.
Von der Leyen described the deal as a “win-win agreement”, adding: “We have heard the concerns of our farmers and our agricultural sector and we have acted on them. This agreement contains robust safeguards to protect their livelihoods. We are also stepping up our actions in relation to import controls, because rules must be respected, also by importers.
“At the same time, we will harness the opportunities this agreement offers for our farmers. For example, this agreement includes 350 European geographical indications which is more than in any other EU trade deal.”
To address concerns among EU farmers about potential competition from South American producers, the agreement incorporates safeguard mechanisms and quotas for sensitive goods.
A provisional understanding on these measures was entered in December.
Both sides have accepted tougher rules allowing the EU to temporarily suspend tariff-free imports on “sensitive” products, including poultry, beef, sugar, eggs and citrus, if inflows are deemed to be harming European producers.
Under these provisions, “an investigation into suspending preferential tariffs” would be triggered by an increase in import volumes of more than 8% or a price drop of over 8% compared to a three-year average.
The Commission may also decide to monitor “non-sensitive products” at the request of domestic industries.
Von der Leyen said around 60,000 European companies export to the Mercosur countries, with half of them being SMEs.
She said those firms will benefit from lower tariffs, saving about €4bn a year in export duties, along with simplified customs procedures and improved access to raw materials.
The Commission president projected EU exports to Mercosur would increase by almost €50bn by 2040, while Mercosur exports to the EU are expected to grow by up to €9bn.
