The trade agreement between the European Union and Mercosur is in the definition phase a few days before the scheduled date for its signature, set for December 20. While several countries in the region support its short-term conclusion, France has expressed its intention to postpone the implementation of the agreement until 2026.
From Paris, Emmanuel Macron’s government expressed concerns about the current content. In this sense, a spokesman for the Foreign Ministry stated that the agreement in its current form was “unacceptable”. The contract aims to create an integrated market of around 780 million consumers, impacting both European manufacturing and Mercosur’s agro-industrial production.
Two weeks ago, French MPs reiterated their opposition to the pact reached at the end of 2024, citing concerns about the impact on local farmers. In particular, they fear that their market will be flooded with agricultural products from Mercosur, which are considered more competitive. In doing so, they mark a point of friction between the European trade agenda and France’s internal production interests. The French objections in the agricultural chapter are shared by other European countries, such as Poland.
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In parallel, the European Commission recently presented additional guarantees to protect the European agri-food market, with the aim of winning the support of hesitant countries. The French government is calling for stricter protection measures for its agricultural sector.
In general, the treaty envisages the gradual elimination of tariffs, the creation of a free trade area between both blocs and the application of rules of origin to ensure that the benefits of the agreement are channeled within Mercosur and the European Union.
The discussion comes ahead of the Mercosur summit scheduled for December 20, where it is expected that the agreement with the European Union can finally be signed. Brazil, with support from Argentina and Paraguay, is promoting the signing after more than two decades of negotiations.
Weeks ago, Brazilian President Lula da Silva confirmed that the document would be signed on these dates. If the agreement is concluded, it will create one of the largest free trade zones in the world with a market of more than 700 million people.
Argentina faces two tense situations. On the one hand, President Javier Milei has just signed a trade agreement with the United States, the implementation of which does not contain any precise details. On the other hand, Milei left the interim presidency of MERCOSUR in July, showing little interest in maintaining the unity of the regional bloc. “We must stop viewing MERCOSUR as a shield that protects us from the world and instead view it as a spear that allows us to effectively penetrate global markets,” he said before leaving office.
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