Brussels: European Union leaders are navigating a delicate standoff as Germany and Spain intensify efforts to secure approval for the long-delayed EU–Mercosur free trade agreement, while France and several other member states continue to resist ratification. The deal, which has been under negotiation for over 25 years, aims to open European markets to South American exports from Argentina, Brazil, Paraguay, and Uruguay, while strengthening trade ties across the Atlantic.
German Chancellor Friedrich Merz and Spanish Prime Minister Pedro Sánchez made a joint appeal to their EU counterparts during the Brussels summit, urging swift endorsement of the agreement. They argued that the pact would bolster Europe’s global economic position and provide critical new opportunities for European exporters amid rising global competition. Both leaders emphasized the strategic significance of the deal for trade diversification and strengthening the bloc’s influence in Latin America.
Despite this push, French President Emmanuel Macron reiterated his reservations, insisting the deal is not ready for ratification. France, backed by Poland, Hungary, and Italy, has raised concerns over potential threats to domestic agriculture, particularly the import of beef, poultry, and sugar, which could undercut European producers. Macron has demanded stricter reciprocity clauses to ensure Mercosur countries adhere to European production, environmental, and food safety standards before he would support the deal.
The European Council and Parliament have recently agreed in principle on safeguard measures designed to protect European farmers, including caps on sensitive imports and mechanisms to react to market disruptions. However, critics argue that these protections do not go far enough, leaving the final outcome of the agreement uncertain. Negotiators face the challenge of balancing trade expansion with domestic economic and environmental concerns.
Tensions over the deal have also played out in public demonstrations. Thousands of farmers from Belgium and other EU countries converged on Brussels, blocking streets with tractors and clashing with police in some instances. The protests reflect deep unease among agricultural communities over the potential impact of reduced tariffs on Mercosur imports, with fears that local markets, livelihoods, and environmental standards could be compromised.
Supporters, including the European Commission and several Nordic states, have highlighted the geopolitical significance of the agreement. Beyond trade, they argue, the deal would signal Europe’s ability to shape international economic norms and reduce dependence on a limited set of trading partners. European Commission President Ursula von der Leyen plans to travel to Brazil this week to seek a formal signing of the agreement, contingent on approval from EU member states.
Approval requires a qualified majority of EU countries at least 15 nations representing 65% of the EU population a threshold complicated by ongoing resistance. Italian Prime Minister Giorgia Meloni has joined calls for additional safeguards for farmers, describing immediate ratification as “premature.” With internal divisions unresolved, the summit may conclude without a definitive decision, leaving the future of the Mercosur pact hanging in the balance.
The EU–Mercosur trade agreement represents both an ambitious economic initiative and a test of the bloc’s capacity to reconcile diverse national interests. Its fate will depend on whether EU negotiators can bridge differences and reassure sceptical member states that the benefits of deeper integration outweigh domestic risks.