The European Union has thrown its weight behind two major Latin American trade agreements, formally launching the ratification process for deals with Mercosur and Mexico despite sustained resistance from agricultural nations that threatens to derail Europe's largest-ever tariff reduction programme.
The European Commission's decision on September 3 to advance both agreements rests on the bold gamble that economic imperatives will overcome political opposition from farming lobbies across the continent. The Mercosur pact alone, struck in December after over 20 years of talks, would establish a free-trade area encompassing more than 700mn people, whilst eliminating billions in annual tariffs.
In a bid to neutralise criticism, Brussels unveiled emergency measures that would permit suspension of preferential treatment for agricultural imports should volumes or market share surge by a tenth, or if prices tumble by the same proportion. According to Politico, the declaration, which takes the form of a legal act binding only the Commission rather than Mercosur nations, represents Brussels' most significant concession to date.
Notably, these safeguards appear to have prompted subtle shifts in France's position. Laurent Saint-Martin, the French trade minister, described the import caps as "a step in the right direction" — marking a departure from Paris's previously uncompromising stance. The Élysée Palace, politically weakened following the government's near collapse last week, has yet to issue a formal response to the Commission's latest proposals.
"EU businesses and the EU agri-food sector will immediately reap the benefits of lower tariffs and lower costs, contributing to economic growth and job creation," Commission President Ursula von der Leyen stated, framing both agreements as "milestones" in Europe's economic future.
The stakes are considerable. Brussels projects the South American accord could expand European exports by nearly two-fifths, generating €49bn in additional trade and sustaining 440,000 positions across the continent. Prohibitive duties facing European manufacturers would vanish, including 35% levies on vehicles, up to 20% on industrial equipment, and 14% on pharmaceutical products.
Yet agricultural constituencies remain deeply sceptical, despite Brussels' efforts at appeasement. The safeguard mechanism, whilst welcomed by some French officials, has been deemed insufficient by farming unions who have already staged protests. The declaration represents the Commission's latest attempt to meet a key demand from Paris — establishing close monitoring of potential market disruptions for EU producers of sensitive products such as beef and poultry.
Paris continues to denounce the arrangement as fundamentally flawed, whilst Warsaw maintains staunch opposition despite acknowledging it now lacks the allies needed to torpedo the initiative, after previously sceptical Italy and Austria signalled their willingness to endorse the redrafted deal. Donald Tusk, Poland's prime minister, has conceded that protective mechanisms had become indispensable given his nation's diplomatic isolation on the issue.
The Commission counters that agricultural imports would remain negligible relative to European production — beef imports capped at 1.5% of EU output, poultry at 1.3%. Officials insist European food safety regulations would apply equally to all products entering the market, regardless of origin.
“We have listened closely to our farmers and Member States. And we have delivered even stronger - legally binding - safeguards to reassure them and give them confidence to support the deal,” Von der Leyen wrote on X.
Meanwhile, environmental campaigners have launched their own offensive. NGO Friends of the Earth branded the pact environmentally destructive, whilst Green MEPs threatened legal challenges over climate compatibility. "This deal will neither curb Trump's reckless trade war nor China's aggressive trade practices," argued Saskia Bricmont, the Greens' lead negotiator on the file, promising to seek judicial review of the agreement's environmental credentials.
The geopolitical context adds urgency to Brussels' push. With Washington pursuing aggressive protectionism under Donald Trump and tensions with Beijing escalating, European officials view Latin American partnerships as essential diversification. Remarkably, the Mercosur bloc – made up of Argentina, Bolivia, Brazil, Paraguay, Uruguay – offers crucial access to lithium and other minerals vital for Europe's green transition, currently dominated by Chinese suppliers.
"In today's uncertain geopolitical climate, diversifying our supply chains and deepening partnerships with trusted allies, partners and friends is not a luxury, it is a necessity," EU trade chief Maros Sefcovic told reporters, as quoted by AFP.
Berlin and Madrid champion this strategic logic, arguing the agreements offer vital economic breathing room as transatlantic trade friction intensifies. "It is essential to counter protectionist narratives and demonstrate that open trade can deliver concrete benefits for citizens," insisted Svenja Hahn, a German liberal MEP from the Renew group closely involved in the negotiations.
The Mexican component faces less controversy, targeting a market that imports substantial food volumes and already conducts €70bn in annual trade with Europe. Outstanding duties reaching 100% on select European agricultural goods would disappear, whilst the agreement secures access to strategic minerals including fluorspar and antimony.
Sophie Primas, a French government spokesperson, acknowledged the Commission had registered various national concerns, though stopped short of indicating any softening in Paris's stance.
To secure implementation, proponents must assemble qualified majorities representing both 15 member states and 65% of the EU's population, plus simple parliamentary approval. The Commission has strategically divided both packages, separating trade provisions requiring only qualified majority support from political elements demanding unanimous consent.
Marie-Pierre Vedrenne, coordinating liberal MEPs on trade matters, captured the underlying tension: "Building a strong political partnership with Mercosur countries is essential in a context of growing trade tensions," she noted, before adding the crucial caveat — protection for European farmers and industries must not be sacrificed.
The ratification battle ahead promises to test Europe's commitment to open markets against domestic political pressures. Whilst French resistance shows tentative signs of tempering in response to Brussels' safeguard proposals, farming unions across the continent remain on the barricades. The agreement has united France's main political forces in opposition, creating a highly sensitive domestic issue at a moment of political turmoil.
With parliamentary elections looming in several member states and farmers increasingly militant, the Commission's timing appears particularly bold. Success would cement the EU's position as the world's preeminent trading bloc; failure would signal Europe's retreat from global economic integration at a critical juncture.
Officials have pledged supplementary measures, including potential harmonisation of pesticide regulations and animal welfare standards for imports, alongside a reinforced agricultural support framework worth €300bn after 2027. Whether these sweeteners prove sufficient to assuage concerns within the entrenched opposition will seal the fate of Europe's most ambitious trade initiative in decades.