Historic EU–Mercosur Trade Deal Reaches Political Conclusion After 25 Years
The EU–Mercosur trade agreement aims to create one of the world’s largest free-trade zones, linking the European Union with the South American Mercosur bloc — Argentina, Brazil, Paraguay, and Uruguay. First launched in 1999, the talks concluded politically in December 2024 after 25 years of negotiations. The deal would remove most tariffs on goods and services, open government procurement markets, and strengthen protections for geographical indications, while embedding environmental and labour commitments.
Legal and Political Hurdles Delay Ratification Timeline
The EU–Mercosur trade deal, still faces a long ratification path. The European Commission was expected to present the legal text by mid-2025, but held it back in July, delaying the formal clock. Once tabled, the European Parliament and EU Council must approve. If treated as a “mixed agreement,” all 27 member states must ratify—meaning final approval could take years. A faster “EU-only” interim version could bring parts of the deal into force sooner.
Strong Opposition From Key EU States Over Agricultural Concerns
Opposition is strongest from France, Poland, and Austria, centred on farming. The agreement grants Mercosur exporters duty-free quotas of 180,000 tonnes of poultry and 99,000 tonnes of beef annually, plus increased access for sugar and ethanol. Farmers warn this will undercut EU producers, who face higher costs from stricter welfare, environmental, and food-safety rules. Environmental groups also fear it could accelerate deforestation in the Amazon.
Brussels Proposes Safeguards, But Resistance Remains Strong
To win over sceptics, Brussels has floated a “political protocol” with safeguard clauses, allowing temporary curbs on sensitive imports like chicken, beef, and sugar if EU markets are seriously disrupted. Still, with national farm lobbies and environmental campaigners mobilised, the road to full ratification in 2025 and beyond is far from clear.
Sources:
Euro News: European Commission puts prepped Mercosur deal on ice
EFTA: EFTA and MERCOSUR conclude negotiations on a Free Trade Agreement
