BRUSSELS — The European Union has definitively approved a landmark trade agreement with the South American Mercosur bloc, overcoming significant internal opposition led by France. This decisive move, confirmed by diplomatic sources following a meeting of EU ambassadors, clears the path for formal signing ceremonies in Paraguay next week.
After more than a quarter-century of complex negotiations, the European Commission champions this agreement as a vital strategic instrument to enhance export opportunities, revitalize struggling economic sectors, and strengthen diplomatic alliances during an era of global instability. Commission spokesperson Olof Gill emphasized the comprehensive importance of the pact, stating it represents “an essential deal, economically, politically, strategically, diplomatically, for the European Union.”
The approval process revealed deep divisions within the Union. France, where political factions united in opposition to protect its influential agricultural industry, spearheaded resistance efforts alongside Ireland, Poland, and Hungary. Their concerns centered on potential market flooding by cheaper agricultural imports from Mercosur nations. However, these objections proved insufficient to block the agreement, particularly after Italy reversed its previous stance and offered crucial support following last-minute negotiations in December.
This groundbreaking agreement will establish one of the world’s largest free trade zones, encompassing over 700 million consumers. It eliminates import tariffs on more than 90% of traded goods between the 27-nation EU and Mercosur members Brazil, Argentina, Paraguay, and Uruguay. EU Trade Chief Maros Sefcovic hailed the “landmark” pact as the Union’s most ambitious trade achievement, projecting annual duty savings exceeding €4 billion for European businesses while boosting exports of automobiles, machinery, and premium beverages.
Proponents including Germany and Spain argue the agreement provides critical countermeasures against Chinese competitive pressures and U.S. tariff policies. Brazilian President Luiz Inacio Lula da Silva previously characterized the deal as a powerful endorsement of multilateralism in an increasingly competitive global landscape.
To address agricultural concerns, the Commission implemented substantial safeguards, including a €6.3 billion crisis fund and mechanisms to suspend preferential tariffs during import surges. The agreement also establishes robust geographical indication protections, preventing South American producers from marketing imitation products like “Parmesao” cheese that undermine authentic European offerings such as Parmesan, Greek feta, and French champagne.
Despite these concessions, agricultural protests erupted across Europe, with French farmers mobilizing tractors in Paris and Belgian producers blockading major highways, reflecting persistent industry anxieties about competitive disadvantages.