The EU-Mercosur trade pact, concluded in late 2024 after more than 20 years of talks, would link the EU with Brazil, Argentina, Uruguay and Paraguay and cover roughly 450 million Europeans and 270 million South Americans. Ursula von der Leyen seeks EU leaders’ approval in Brussels before signing in Foz do Iguaçu, but the deal faces strong farmer protests and a likely close vote in the European Parliament. Key issues include a 99,000-tonne beef quota, high tariffs above the quota, and newly proposed 5% safeguard triggers for price and import-volume shocks.
EU-Mercosur Deal Nears Signing as Farmer Protests Mount — Key Safeguards And Beef Quota Under Scrutiny
Farmer says the EU-Mercosur deal will flood the market with cheaper alternatives and cause untold damage to their livelihoods (Idriss BIGOU-GILLES)(Idriss BIGOU-GILLES/AFP/AFP)
Disagreements over the EU-Mercosur trade agreement are set to dominate a European Council summit in Brussels as leaders weigh whether to allow European Commission President Ursula von der Leyen to travel to Brazil to sign the pact at a Mercosur leaders’ summit in Foz do Iguaçu.
What Is The Mercosur Deal?
The agreement, negotiated for more than two decades and concluded in late 2024, links the European Union with the Mercosur bloc — Brazil, Argentina, Uruguay and Paraguay. If ratified, the pact would create one of the world’s largest free-trade areas, covering roughly 450 million consumers in Europe and some 270 million in South America.
It would reduce many customs duties, opening EU markets to South American beef, sugar, rice, honey and soybeans while allowing greater EU exports of cars, machinery, wine and spirits. The deal also reflects Europe’s interest in stronger ties with a mineral-rich region that supplies lithium, copper, iron and cobalt needed for energy and technology transitions.
Why Farmers Oppose The Agreement
European agricultural unions and many farmers argue the pact will flood markets with cheaper imports and undermine livelihoods. Organisers expect large protests in Brussels — up to 10,000 people, including about 4,000 from France — voicing fears for local farming communities and rural economies.
Mercosur’s four countries exported about $23.3 billion of agricultural and agri-food goods to the EU in 2024, leaving the EU with a reported trade deficit of roughly €20.1 billion ($23.6 billion) that year, according to Eurostat.
Beef Quota, Tariffs And Safeguards
A central flashpoint is the tariff‑rate quota: the deal allows up to 99,000 tonnes of beef into the EU duty-free — roughly 1.6% of EU production. The European Commission has made clear that duties on shipments above the quota will remain high (in excess of 40%), not the lower figures sometimes reported.
To address competitiveness concerns, the European Parliament has backed new safeguard triggers: the Commission should consider intervention if an imported Mercosur product is priced at least 5% below its EU equivalent and if duty‑free imports rise by more than 5% — thresholds cut from an earlier 10% proposal. Negotiators must now agree on a final compromise for those triggers and other protections.
Timeline And Approval Process
Von der Leyen plans to sign the agreement at the Mercosur summit only after securing backing from EU heads of state in Brussels. The European Parliament must then ratify the deal; a close vote is likely and roughly 150 MEPs have signalled they may seek a legal review at the European Court of Justice.
Who Supports And Who Opposes?
Supporters — including Spain and Germany — highlight commercial gains for exporters of wine, olive oil and vehicles. Spain’s agriculture minister described the pact as “crucial.”
France and Italy (and many farming groups) demand stronger safeguards, tighter import controls and higher standards for Mercosur producers. French President Emmanuel Macron and Italy’s prime minister Giorgia Meloni have both warned against ratification until protections for farmers are bolstered. Brazilian President Luiz Inácio Lula da Silva has urged swift ratification, warning that Brazil will not pursue further deals under his presidency if this one is delayed.
What’s At Stake
The deal could reshape transatlantic trade in agriculture, industry and minerals, while testing the EU’s ability to balance commercial opportunity with environmental, food‑safety and social standards. Lawmakers and member states now face a politically charged choice between potential economic benefits and protecting vulnerable farming sectors.
