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European Union nations are expected to approve the signing of the bloc’s largest-ever free trade agreement with the South American Mercosur group, marking a major milestone more than 25 years after negotiations began. The agreement, involving Argentina, Brazil, Paraguay, and Uruguay, is seen by the European Commission and key supporters such as Germany and Spain as a strategic move to boost EU exports, counter the impact of U.S. tariffs, and reduce economic dependence on China by securing access to critical raw materials.
Ambassadors from the EU’s 27 member states are due to signal their governments’ positions, with approval requiring at least 15 countries representing 65% of the EU population. Once cleared, European Commission President Ursula von der Leyen will be able to formally sign the agreement, although it will still need approval from the European Parliament before entering into force.
The EU-Mercosur trade deal would eliminate around 4 billion euros in tariffs on EU exports, making it the bloc’s most significant agreement in terms of tariff reductions. Mercosur countries currently impose high duties, including up to 35% on car parts, 28% on dairy products, and 27% on wine. Total goods trade between the two sides reached approximately 111 billion euros in 2024, with EU exports focused on machinery, chemicals, and transport equipment, while Mercosur exports are largely agricultural products, minerals, and paper goods.
Opposition remains strong, particularly from France, the EU’s largest agricultural producer, which argues the deal will increase imports of low-cost beef, poultry, and sugar, undermining European farmers. Farmer protests have intensified, especially in France, where roads have been blocked. Environmental groups have also criticized the agreement, warning of its potential climate impact.
Despite added safeguards, including import controls, crisis funds, and protections for sensitive farm products, France and Poland remain opposed. However, Italy appears to have shifted to support the deal. While French officials vow to continue fighting the agreement in the European Parliament, key lawmakers believe it will ultimately pass, with a final vote expected in April or May.
