EU and Mercosur: Progress Towards a Free Trade Agreement

The European Union and the Mercosur countries (Brazil, Argentina, Paraguay, Uruguay, and Bolivia) are nearing the finalization of a landmark free trade agreement. The deal, which aims to eliminate tariffs on 90% of goods traded between the two regions, could be announced soon, with significant deadlines like the G20 summit in Rio on November 18–19 and the Mercosur summit in Montevideo from December 5–7 providing potential platforms. By promoting tariff-free trade, the agreement seeks to deepen economic ties and boost exchanges in sectors ranging from agriculture to industrial and environmental goods.

However, the agreement has sparked considerable debate, particularly in France, where concerns have been raised about its impact on local farmers and the environment. Increased beef imports from Mercosur countries pose a potential threat to French livestock producers, while deforestation and other environmental risks associated with expanded agricultural production have drawn criticism. These issues have fueled broader discussions about balancing economic growth with sustainability and local industry protections.

As a mixed agreement, it requires unanimous approval by the Council of the European Union, endorsement by the European Parliament, and ratification by the national parliaments of EU member states. This multi-step process underscores the complexity of finalizing the deal. Once the agreement is complete and translated into all EU official languages, the ratification process could accelerate, opening opportunities for businesses while highlighting the need for strategies to address environmental and competitive challenges.