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The Mercosur pact, concluded in principle last December, still needs ratification by the European Parliament and a qualified majority of EU governments before it can take force.

Published on: September 3, 2025

Edited on: September 3, 2025

EU LARGEST TRADE DEAL

Rep Image | Image Courtesy: X @Trade_EU

Brussels: The European Commission will present its long-delayed trade accord with South America’s Mercosur bloc for approval on Wednesday. The move sets up a clash between member states eager to expand markets and critics, led by France, who argue the deal threatens farmers and climate goals.

The agreement with Argentina, Brazil, Paraguay, and Uruguay was sealed in principle last December after more than 25 years of negotiations. For it to enter into force, it must secure backing from the European Parliament and a qualified majority of EU governments, at least 15 of 27 member states representing 65 percent of the EU population.

Germany, Spain, and other proponents argue that the accord is crucial for diversifying EU trade ties, particularly as tariffs imposed by US President Donald Trump squeeze European exports. They also highlight the deal’s potential to reduce dependence on China for critical minerals such as lithium, essential for Europe’s green transition.

“The agreement is the largest in terms of tariff reductions the EU has ever reached,” the Commission said, calling it a cornerstone of Europe’s strategy to secure new markets and supply chains.

The Commission will also present the updated EU-Mexico trade agreement, concluded in January, as part of its broader push to deepen partnerships since Trump’s re-election last November.

MERCOSUR AGREEMENT
Rep Image | Image Courtesy: X @EPPGroup

France, the EU’s largest beef producer and the most outspoken critic, has branded the deal unacceptable. French officials, backed by some farmers’ unions, argue that it will allow in cheap South American beef and other commodities produced under lower environmental and food safety standards.

Farmers across Europe have staged protests warning that the pact could undermine EU agriculture. Green groups, including Friends of the Earth, have condemned the deal as climate-wrecking, citing fears it will fuel deforestation and emissions.

Supporters counter that the agreement opens major export opportunities for EU cars, machinery, and chemicals, while offering lower tariffs and greater access for European cheeses, hams, and wines in South American markets.

Despite its scale and strategic ambitions, the Mercosur pact faces an uphill battle to win ratification. For its advocates, it represents a vital response to protectionist US policies and China’s market dominance. For opponents, it is a threat to European farmers, environmental commitments, and the bloc’s credibility on climate policy.

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