EU presents Mercosur deal for approval amid resistance from agricultural sector

3 September 2025

The European Commission has put forward its proposals for a new free trade agreement with the Mercosur union and Mexico. The deal with the bloc – comprising Argentina, Brazil, Uruguay and Paraguay – would create the largest free trade area in the world, but is a sensitive issue for farmers.

At the end of last year, the Commission forced a breakthrough in the decades-long negotiations with Mercosur. It is confident that the deal could increase exports to the bloc by around 40 per cent a year.

The reduction in import tariffs should offer opportunities for European manufacturers of cars, machinery and pharmaceutical products.

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“We continue to diversify our trade, foster new partnerships and create new business opportunities,” said Commission president Ursula von der Leyen.

“EU businesses and the agri-food sector will immediately benefit from lower tariffs and costs, which will contribute to economic growth and job creation.”

The agricultural sector, however, is concerned about competition from Latin American beef, poultry, sugar and other products. The Commission argues that preferential imports will remain limited to a fraction of European production, and says it has “robust” measures in place to protect farmers from a harmful increase in imports.

Import tariffs

The Commission says that farmers can benefit from the upgrade of the free trade agreement with Mexico. The end of Mexico's high import tariffs on poultry, pork, cheese, chocolate, wine and pasta should make European products much more competitive, it says.

EU Trade Commissioner Maros Sefcovic told a press conference that the Commission hoped to complete the approval process by the end of the year.

"Belgium will therefore abstain at the very least, because Wallonia has rejected it"

The text must be approved by at least 15 of the EU’s 27 member states and the European Parliament to be formally adopted. France has led the opposition in recent months. In Belgium, Wallonia’s Agriculture minister rejected the deal.

“Our position on the EU-Mercosur agreement is clear and has been repeated many times: we reject the agreement as it stands, and Belgium will therefore abstain at the very least, because Wallonia has rejected it,” Anne-Catherine Dalcq of MR told the Walloon parliament on Wednesday.

“We are not against trade, but we are against unfair competition because there is no mirror clause in this agreement. And we are against the lack of respect for producers.”

Outside agriculture, employers' organisations in Belgium are in favour. Flemish minister president and Trade minister Matthias Diependaele has not reacted to the text presented on Wednesday but has previously spoken in favour of the deal.

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