According to Reuters, the European Union and the Mercosur bloc agreed on mutual tariff reductions: Mercosur countries will remove duties on 91% of EU exports (including cars, where current tariffs reach 35%) over a 15-year period, while the EU will gradually eliminate tariffs on 92% of imports from Mercosur over up to 10 years.
Tariff concessions and agricultural quotas
Under the agreement, Mercosur will also remove high tariffs on EU agricultural products—specifically 27% on wines and 35% on spirits. For sensitive agricultural products, expanded quotas are предусмотрено: the EU will allow an additional import of 99,000 tonnes of beef, while Mercosur countries will open a duty-free quota of 30,000 tonnes of cheese for the EU.
The agreement also sets EU quotas for imports of poultry, pork, sugar, ethanol, rice, honey, maize and sweet corn, and Mercosur quotas for milk powder and infant formula. According to European Commission estimates, the additional imports will represent 1.6% of EU beef consumption and 1.4% of poultry meat consumption.
A separate element of the agreement is the recognition of around 350 EU geographical indications, aimed at protecting traditional products from imitation (for example, the name Parmigiano Reggiano).
Arguments of supporters
The European Commission and supporting countries, including Germany and Spain, consider the agreement strategic. They argue that it will:
- reduce the EU’s dependence on China, particularly with regard to critical raw materials such as lithium for batteries;
- offset export losses caused by US tariffs;
- eliminate more than €4 billion in duties annually for EU exporters;
- open access for European companies to public procurement markets in Mercosur countries on equal terms with local suppliers.
Critics’ position and farmer protests
European farmers fear an influx of cheap South American agricultural products, particularly beef, which they argue does not meet EU environmental and food safety standards. Although the European Commission insists that EU standards will not be relaxed, environmental organisations criticise the agreement for lacking effective enforcement mechanisms for environmental commitments, especially regarding the prevention of deforestation after 2030.
Friends of the Earth has described the deal as “climate-wrecking,” pointing to the risk of increased deforestation in the Amazon. Opposition to the agreement remains strong in France, Poland and Hungary, while Italy’s position ultimately shifted, allowing the approval process to move forward.
How the EU is trying to reassure sceptics
To reduce risks for the agricultural sector, the European Commission has proposed:
- a safeguard mechanism to suspend preferential access for sensitive products (such as beef) if import volumes rise or prices fall by more than 5% in one or more EU countries;
- a review of production standards for imported products (pesticides, animal welfare);
- stronger import controls through additional audits in third countries;
- the creation of a €6.3 billion crisis fund for farmers in the next EU budget, along with the early allocation of €45 billion in support;
- reduced import duties on certain mineral fertilisers, whose prices have risen by up to 60%.
Protests in Ireland and next steps
Following the provisional approval of the deal, thousands of farmers in Ireland took to the streets, warning of risks to family farms and food quality standards. Similar protests also took place in France, Poland and Belgium.
The final decision now rests with the European Parliament, which must ratify the agreement. Ireland and France have already stated that they will fight against its approval, making the future of the EU’s largest trade deal politically tense and far from guaranteed.