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 9 January in favour of the trade accord with Brazil, Argentina, Paraguay and Uruguay.
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European Commission President Ursula von der Leyen said in a statement upon the signing of the trade agreement: “We have delivered a substantive and mutually beneficial deal, which will increase prosperity and create incredible opportunities. This deal marks a new era of trade and cooperation with our Mercosur partners.”
The European Council endorsed the deal too, saying: “The agreement offers tariff reductions and opens access to new markets for a wide range of goods and services. Key sectors such as agriculture, automotive, pharmaceuticals, and chemicals 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 are “united” in denouncing the deal “despite the latest adjustments to the additional safeguard measures”.
The farming lobby warned that the agreement “erodes trust in European governance, democratic processes and parliamentary scrutiny at a time when institutional credibility is already under strain”.
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By GlobalDataCopa-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”.
The 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.
EC President von der Leyen is scheduled to travel to Paraguay to sign the agreement, which still requires ratification by the European Parliament.
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 currently export to Mercosur, with half of them being SMEs.
According to her, these 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.
