EU-Mercosur Trade Deal: A Game-Changer or a Threat to European Farmers?
On 9 January of the year 2026, the European Council completed its negotiations with Mercosur (Argentina, Brazil, Paraguay, and Uruguay) for a trade agreement; however, it cannot enter into force until the approval of the European Parliament has been given.
This agreement is expected to establish one of the largest bilateral trading relationships in the world, allowing both geographical areas access to the respective markets of over 700 million consumers, with a current total value of trade in goods being more than €111 billion annually throughout the globe. Both parties have almost equal amounts of goods traded, either sent to or returned from, along with an approximately equal amount of trade in services. The agreement provides for the phased elimination of duties on over 90 per cent of products exported/imported between both countries throughout the duration of a long transition period and enhances EU access to Mercosur markets for machinery, chemical products, transport equipment, pharmaceuticals, and all related services. The EU exporter community is expected to gain notably due to monetary savings from the elimination of tariffs over the multi-year transition.
European farmers and environmental advocates are amongst the most vocal critics of the agreement, arguing that cheaper imports will drive down the prices and erode their market share, raise questions about the safety and environmental standards of imported foods, and also undermine the social harmony of European-based agriculture. The agreement includes negotiated safeguard provisions for sensitive products, which will permit temporary reinstatement of tariffs on those products when necessary..
The vote by member states to approve the agreement has drawn significant opposition from France, Ireland, and Poland and highlights the continuing political and sectoral disagreements about the agreement. However, many parties involved with the agreement see its potential strategic strength in terms of developing trade opportunities with other parts of the world and creating even greater competition for the European Union-based industry.
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