EU-Mercosur Trade Deal Faces French Veto at Final Hurdle

European Union member states are meeting in Brussels to finalize a landmark free trade agreement with the South American Mercosur bloc, but the deal faces a major political showdown.

For the proposal to move forward, it needs the backing of at least 15 of the 27 EU nations, representing 65% of the bloc's total population. While the agreement is expected to secure the necessary majority, it will do so without the support of several key countries.

France Leads Opposition, Calling Deal "From Another Age"

France has emerged as the most prominent opponent of the EU-Mercosur treaty. President Emmanuel Macron confirmed late Thursday that his country would not support the agreement, stating that French political forces were "unanimous" in their rejection.

"France is favorable to international trade, but the EU-Mercosur agreement is an agreement from another age, negotiated for too long on bases that are too outdated," Macron stated in a post on X.

This resistance isn't new. The deal, which was originally scheduled for signing in Brazil last December, was postponed after facing opposition from France, Italy, and Poland.

What the EU-Mercosur Agreement Aims to Achieve

If ratified, the agreement would create one of the world's largest free trade blocs, connecting the EU with Brazil, Paraguay, Argentina, and Uruguay. The primary goal is to diversify trade and strengthen strategic ties in an increasingly competitive global environment.

Key provisions of the deal include:

• Tariff Removal: Import tariffs would be eliminated on more than 90% of products.

• Savings for Businesses: The EU estimates that companies within the bloc could save billions in duties annually.

• Export Boost: The agreement is designed to facilitate exports of European vehicles, machinery, wines, and spirits to Latin America.

EU trade chief Maros Sefcovic recently called it "the biggest free trade agreement we have negotiated." Echoing this sentiment in December, Brazilian President Luiz Inacio Lula da Silva said the deal would "send the world an important message in defense of multilateralism."

Farmers Protest Amid Fears of Unfair Competition

Despite high-level support from governments like Germany and Spain, the deal has triggered fierce resistance from Europe's agricultural sector. Farmers argue that the agreement threatens their livelihoods by allowing an influx of cheaper imports from South America.

French farmers protest the EU-Mercosur trade deal by blocking the Arc de Triomphe in Paris with tractors.

On Thursday, farmers escalated their demonstrations, driving tractors into the streets and blocking major routes in Paris and parts of Germany to voice their discontent.

Proponents in Berlin and Madrid counter that the deal is a necessary boost for industries grappling with competition from China and tariffs in the United States. However, with powerful agricultural lobbies and national governments aligned against it, the EU-Mercosur pact's future remains uncertain.