EU Nears Landmark Mercosur Trade Deal Amid Farmer Protests

The European Union is on the verge of approving its largest-ever free trade agreement with the South American Mercosur bloc, marking a potential conclusion to over 25 years of negotiations. The deal, however, faces fierce opposition, most notably from French farmers who have taken to the streets in protest.

EU nations are expected to give their approval for signing the accord on Friday. Proponents see the deal as a strategic move to open new markets and secure critical resources, while opponents fear it will devastate the EU's agricultural sector.

French farmers use tractors to block roads in Paris, protesting the potential impact of the EU-Mercosur trade deal on domestic agriculture.

A Strategic Push to Counter US Tariffs and China

The European Commission, along with member states like Germany and Spain, argues that the agreement is vital. They contend it will help offset business lost due to U.S. tariffs and reduce the EU's economic reliance on China by ensuring access to critical minerals.

The deal aims to unlock significant economic benefits by removing €4 billion ($4.66 billion) in duties on EU exports. Mercosur nations—Argentina, Brazil, Paraguay, and Uruguay—currently impose high tariffs on European goods, including 35% on car parts, 28% on dairy products, and 27% on wines. In 2024, goods trade between the two blocs was valued at €111 billion. EU exports are primarily machinery and chemicals, while Mercosur exports are dominated by agricultural products and minerals.

France Leads Opposition Over Agriculture Concerns

The primary resistance comes from France, the EU's largest agricultural producer. French officials and farmers warn that the deal will trigger a surge in cheap imports of products like beef, poultry, and sugar, undercutting domestic producers. This opposition has fueled widespread farmer protests across the EU, including road blockades in France on Thursday.

Approval of the deal requires the backing of 15 of the 27 EU member states, representing at least 65% of the bloc's population. Once approved by national governments, the agreement will be signed by Commission President Ursula von der Leyen before heading to the European Parliament for final ratification.

Safeguards Aim to Appease Skeptics

To address the concerns of skeptical nations, the European Commission has introduced several safeguards. These measures include:

• The ability to suspend imports of sensitive agricultural products.

• Strengthened import controls, particularly for pesticide residues.

• The establishment of a crisis fund to support farmers.

• A pledge to cut import duties on fertilizers.

These concessions appear to have successfully swayed Italy, which shifted from opposing the deal in December to supporting it. However, France and Poland remain unconvinced.

The Fight Moves to Parliament

Despite the expected approval from member states, the battle over the EU-Mercosur deal is far from over. French Agriculture Minister Annie Genevard has vowed to continue the fight, aiming for a rejection in the European Parliament, where the vote is expected to be tight.

Environmental organizations like Friends of the Earth have also voiced strong opposition, labeling the accord a "climate-wrecking" deal.

Despite the resistance, Bernd Lange, a German Social Democrat and chair of the parliament's trade committee, expressed confidence that the agreement would pass. A final vote is anticipated in April or May.