The agreement between Mercosur and the European Union could move forward this Tuesday

Negotiated for more than 25 years, the agreement between the European Union (EU) and Mercosur could move forward this Tuesday (15/12), with the start of a series of votes that will determine the future of the trade agreement.

Negotiations of recent decades

Negotiations for a trade agreement between the European Union (EU) and Mercosur began in 1999.
After more than 20 years, the free trade agreement was concluded at the end of 2024, during the Mercosur summit in Uruguay.
Among the main points of the treaty are the reduction of import taxes on trade between Mercosur and the European Union.
Under the agreement, the EU will owe import duties on 77% of agricultural products purchased from Mercosur. The South American bloc has pledged to remove 91% tariffs on items imported from European countries.

This Tuesday, the European Parliament analyzes the safeguard measures targeting the countries of the European Union. The proposals, approved by the International Trade Commission last week, include the possibility of suspending the trade benefits of the agreement if imports from Mercosur cause damage to European agri-food sectors.

If the measure is approved by the majority of 720 MEPs, the procedure is brought before the European Council. The body, made up of heads of state and government of the 27 countries of the bloc, meets on December 18 and 19.

In this second phase, at least 15 of the 27 EU countries, representing at least 65% of the bloc’s population, must be in favor of the agreement for it to be ratified.

The intention is that the votes will take place in time for the next summit of Mercosur heads of state, next Saturday (20/12), in Foz do Iguaçu, Paraná. The event is expected to involve the European Commission, Ursula von der Leyen, for the final signing of the free trade agreement.

French opposition

As the decisive week for the EU-Mercosur deal approaches, the French government has requested that the vote on the treaty be postponed before Ursula von der Leyen’s trip to Brazil for the Mercosur summit.

According to a statement by French Prime Minister Sébastien Lecornu, this request was made because the agreement does not yet include French requirements for final approval. Among them, the guarantees which will be discussed by the European Parliament and the environmental and health normative measures.

Amid protests from French farmers, who fear negative consequences if the deal is ratified, deputies in France’s National Assembly approved a resolution calling on the country, led by Emmanuel Macron, to reject the free trade deal with the South American bloc.

This decision does not, however, require compliance by the French executive, but rather constitutes a means of putting pressure on the local government.

In an attempt to form a minority capable of blocking the agreement, France has already received positive signals from countries like Poland, Hungary, Austria and Ireland.

Brazilian position

Despite resistance from France, the Minister of Agriculture and Livestock, Carlos Fávaro, defended that the agreement be signed on December 20, as predicted by President Luiz Inácio Lula da Silva.

For Fávaro, possible improvements to the treaty must be discussed and implemented while the free trade agreement is already in force.

“We can no longer wait for the agreement to be signed,” the minister said. “There’s no point in looking for the perfect deal. That’s why it spent more than 25 years (in negotiation). We need to implement it and improve it gradually.”