Leaders divided ahead of Brussels summit
The long-awaited trade agreement between the European Union and the Mercosur bloc of Latin American countries is facing renewed uncertainty, nearly 25 years after negotiations began. As EU leaders prepare to meet in Brussels, Germany is urging swift approval, while France and Italy argue that signing the deal now would be premature.
German Chancellor Friedrich Merz has called for finalising the agreement, warning that further delays could undermine the European Union’s credibility and ability to act. By contrast, French President Emmanuel Macron and Italian Prime Minister Giorgia Meloni have voiced strong reservations, particularly over the impact on European farmers.
What the EU–Mercosur agreement includes
The agreement, finalised in late 2024, aims to liberalise trade between the EU and four Mercosur members: Argentina, Brazil, Paraguay and Uruguay. It would allow European companies to export more vehicles, machinery, wines and spirits to Latin America, while easing access for South American agricultural products such as beef, sugar, rice, soybeans and honey into European markets.
Supporters including Germany, Spain and Nordic countries argue the deal would help offset the impact of US tariffs and reduce Europe’s dependence on China by improving access to Latin American raw materials and minerals.
Farmers drive opposition in Europe
Resistance to the deal is strongest among farming communities in France, Italy and Poland. French farmers staged protests across the country and outside the European Parliament in Strasbourg, warning that increased imports could undercut domestic producers.
Macron has said France would strongly oppose the agreement if it were forced through without stronger safeguards, citing concerns over imports produced using chemicals banned in France. Meloni echoed these concerns, saying that failing to address agricultural protections before signing would be irresponsible.
Safeguards and political pressure
Negotiators have introduced a proposed safeguard mechanism that would allow the EU to temporarily reintroduce tariffs if imports surge or prices collapse. It remains unclear whether this measure will be enough to satisfy critics.
Opposition from at least four EU member states representing 35 percent of the bloc’s population would be enough to block ratification.
Brazil issues warning on future talks
Brazilian President Luiz Inácio Lula da Silva has warned that if the agreement is not signed this year, he will not reopen negotiations during his presidency. He argued that Mercosur had already made significant concessions and said the deal sends an important signal in defence of multilateral trade at a time of global uncertainty.
