EU Commission Seeks Member State Approval for Mercosur Trade Deal with Farmer Safeguards

The European Commission is urging EU member states to approve a long-delayed free trade agreement with the Mercosur bloc of South American countries—Argentina, Brazil, Paraguay, and Uruguay—aimed at creating the world's largest free trade area with around 700 million people. The deal is projected to boost EU exports to Mercosur countries by nearly 40%, adding some €49 billion annually, and is expected to benefit sectors including industrial goods, cars, and agricultural products like wine, chocolate, and olive oil. To address concerns from EU farmers, especially in France, Poland, and Italy, the Commission has promised robust, legally binding safeguards, including a €6.3 billion emergency fund and mechanisms to protect sensitive agricultural sectors such as beef, poultry, sugar, and ethanol from market shocks or import surges. These safeguards include quota limits on imports of sensitive products and the ability for member states to activate protective measures in case of negative impacts, with the Commission emphasizing that EU food safety and animal welfare standards will remain intact. Despite opposition from some governments and farmers fearing unfair competition from cheaper South American goods, proponents argue that the agreement is vital for expanding global trade partnerships amid global uncertainties and US tariffs. The agreement now awaits ratification by at least 15 of the 27 EU member states and the European Parliament, with the Commission hoping the new assurances will secure the necessary support.