France’s last‑minute objections and ongoing farmer protests in Brussels have put the EU–Mercosur trade deal in jeopardy just weeks before a planned Dec. 20 signing in Brazil. The agreement would phase out tariffs over 15 years between the EU and five South American countries, covering about 780 million people and roughly a quarter of global GDP. Brussels has offered measures such as a 10% anti‑dumping trigger, temporary tariff withdrawal and stricter pesticide checks to protect EU farmers, but national objections may delay ratification into 2026 or beyond.
Farmers and Political Opposition Threaten To Freeze EU–Mercosur Trade Deal Ahead Of Planned Signing
FILE - French farmers protest against the Mercosur trade alliance with South America countries, on Oct. 14, 2025 near the Eiffel Tower in Paris. (AP Photo/Michel Euler, File)(ASSOCIATED PRESS)
France has emerged as a last‑minute obstacle to a major trans‑Atlantic trade agreement between the 27‑member European Union and the five South American members of Mercosur after negotiations that spanned a quarter of a century. Large farmer protests in Brussels and objections from several EU capitals have put the pact’s planned signing in Brazil at risk.
What the Deal Would Do
The EU-Mercosur agreement, negotiated in principle a year ago, would phase out tariffs on nearly all goods exchanged between the blocs over a 15‑year period. If ratified by all 27 EU governments and the European Parliament, it would link markets of roughly 780 million people and account for about a quarter of global GDP.
Political Resistance And Protests
French Prime Minister Sébastien Lecornu called the current text "unacceptable" and requested a delay of the EU leaders’ vote, potentially pushing a decision into 2026 or later. Poland, Austria and the Netherlands have also expressed concerns that Mercosur exporters could gain an unfair price advantage over EU producers who operate under stricter labour, sanitary and environmental rules, including bans on certain pesticides.
Farmers across Europe, particularly in sectors such as dairy and beef, have staged protests that included tractors blocking streets and capitals. Agricultural unions plan fresh demonstrations in Brussels timed with the European Council meeting as leaders consider whether to authorise the deal’s signing.
FILE - French Prime Minister Sebastien Lecornu leaves the weekly cabinet meeting, Tuesday, Oct. 14, 2025 at the Elysee Palace in Paris. (AP Photo/Michel Euler, File)(ASSOCIATED PRESS)
Brussels’ Response: Protections And Safeguards
The European Commission has proposed a package of measures to address farmers’ concerns, including streamlined administrative rules, a fairer distribution of the bloc’s roughly €50 billion in annual farm subsidies, a 10% price trigger allowing investigations into suspected undercutting, and the temporary withdrawal of preferential tariffs for serious breaches. The Commission has also proposed stepped-up border checks to verify that imports are not produced using pesticides banned in the EU.
Commission officials argue the agreement would bolster the EU’s geopolitical credibility and create a rules-based platform for cooperation on global challenges such as climate change, economic security and trade governance. Supporters say it could save businesses about $4.26 billion a year in duties and ease exports of products ranging from wine and cheese to soybeans, rare earths and pharmaceuticals.
Why It Matters
The pact has taken on added significance after recent global trade tensions, including tariffs imposed by the U.S. that affected EU exports. Failure to finalise the Mercosur deal could weaken the EU’s negotiating position in other talks with large partners such as Indonesia and India and undermine the bloc’s stated goal of combining trade with high regulatory and environmental standards.
Next Steps
European Commission President Ursula von der Leyen and European Council President Andrés Costa are scheduled to sign the agreement in Brazil on Dec. 20 if the EU Council authorises the signing. With national objections and mass protests unresolved, that timetable is now uncertain.
Key Quote: "It is clear in this context that the conditions are not in place for any vote by the EU Council on authorizing the signing of the agreement," French Prime Minister Sébastien Lecornu said.
As negotiations continue behind the scenes, the deal’s fate will hinge on whether Brussels can reassure national governments and farming constituencies while preserving the trade and geopolitical gains Brussels says the pact would deliver.
