The agreement between the EU and Mercosur (Argentina, Brazil, Paraguay, and Uruguay) предусматриває broad trade liberalisation. Under the deal, Mercosur countries will gradually remove duties on 91% of EU exports over a 15-year period, including cars, which currently face tariffs of up to 35%. In return, the European Union will phase out duties on 92% of Mercosur exports over a period of up to 10 years.
A separate and particularly sensitive chapter of the agreement concerns agricultural products. Mercosur will eliminate import tariffs on European wines (17%) and spirits, which currently face duties of 20–35%. For sensitive agricultural goods, the EU has agreed to expand tariff-rate quotas. In particular, an additional quota of 99,000 tonnes of beef imports from Mercosur will be opened, while South American countries will grant the EU a duty-free quota of 30,000 tonnes of cheese.
The agreement also provides for EU import quotas on poultry meat, pork, sugar, ethanol, rice, honey, maize, and sweet corn, and Mercosur quotas on milk powders and infant formula. The additional beef quota corresponds to around 1.6% of total EU beef consumption, while the poultry quota accounts for approximately 1.4%. Supporters of the deal argue that these volumes are relatively limited and should not destabilise the European market.
An important element of the agreement is the recognition of 350 EU geographical indications, aimed at protecting traditional European products—such as Parmigiano Reggiano cheese—from imitation in Mercosur markets.
The European Commission and countries supporting the agreement, including Germany and Spain, view the pact as a strategic tool for trade diversification. In their view, the deal would help the EU reduce its dependence on China, particularly in access to critical minerals such as lithium for batteries, while also mitigating the negative impact of tariffs imposed by the United States. According to the European Commission, the agreement would remove more than €4 billion in duties on EU exports annually.
In addition, the EU would gain a so-called first-mover advantage in Mercosur markets, as the bloc has a relatively limited network of free trade agreements. For the first time in such accords, Mercosur countries have also agreed to allow European companies to bid for public procurement contracts on the same terms as local suppliers.
At the same time, critics of the agreement—primarily farmers’ organisations and environmental groups—warn of significant risks. European farmers fear an influx of cheap South American agricultural commodities, especially beef, which they argue do not meet EU environmental, climate, and food-safety standards. The European Commission insists that EU standards on food safety and environmental protection will not be weakened.
The agreement includes environmental commitments, notably a pledge to prevent further deforestation after 2030. However, environmental organisations criticise these provisions for lacking clear and enforceable implementation mechanisms. Friends of the Earth has described the deal as “climate-wrecking,” warning that it could stimulate increased agricultural production in regions linked to deforestation, including the Amazon.
France, the EU’s largest beef producer, has stated that it would support the agreement only if it reliably safeguards the interests of European farmers. Italy, Hungary, and Poland have expressed similar concerns. Together, these four countries could form a blocking minority and prevent ratification of the deal.
To reduce opposition, the European Commission proposed a safeguard mechanism in September that would allow the temporary suspension of preferential market access for Mercosur products—particularly beef—in the event of a sharp rise in imports or a significant fall in prices. Initially, the mechanism was to be triggered by changes of 10%, but the European Parliament has supported lowering this threshold to 5%.
In addition, the Commission has announced plans to strengthen border controls on food, animal, and plant products entering the EU by increasing the number of audits and checks in third countries. It has also signalled that it will examine potential alignment of production standards between imported and EU-produced goods, particularly with regard to pesticide use and animal welfare requirements.
A further safeguard would come from the future EU budget, which is expected to include a €6.3 billion crisis fund to support farmers in the event that the agreement negatively affects agricultural markets.
As a result, the EU–Mercosur agreement remains a delicate balance between geopolitical and economic benefits on the one hand, and serious risks to agriculture and the environment on the other. Upcoming decisions by EU member states will determine whether the European Union can move forward with this ambitious project or whether it will once again be delayed due to internal divisions.
PigUA.info, based on materials from reuters.com