As EU negotiators prepare for a critical round of talks in Uruguay on December 5-6, France is stepping up its efforts to block the long-awaited EU-Mercosur trade agreement, which aims to create one of the world’s largest free trade zones. While Germany and Spain lead a coalition of EU states in favor of the deal, France is attempting to rally Italy, Austria, Poland, and the Netherlands to form a blocking minority.
The EU-Mercosur agreement, which has been in negotiations for 25 years, seeks to open up trade between the European Union’s 27 member states and the four founding countries of the South American Mercosur bloc: Argentina, Brazil, Paraguay, and Uruguay. Bolivia, which joined Mercosur in 2024, will not take part in the current negotiations. The deal promises to cover 750 million people and one-fifth of the global economy.
While a political agreement was reached in 2019, the deal has faced growing opposition from some EU member states, particularly those with strong agricultural sectors. France, which has consistently opposed the agreement, argues that the trade deal could harm its agricultural industry, especially in the context of lower Mercosur agricultural standards. French trade minister Sophie Primas has pushed for the inclusion of the Paris Agreement as a binding clause in the deal to ensure that environmental standards are met.
A French diplomat told Euronews that concerns about the deal extend beyond France, with countries such as Poland and Italy also expressing reservations. Poland’s agriculture ministry has warned that the deal could threaten its agricultural sector, particularly poultry. Italy has voiced similar concerns, with Agriculture Minister Francesco Lollobrigida demanding that Mercosur farmers adhere to the same standards as their EU counterparts.
Ireland, a major beef exporter, and Belgian farmers have also raised alarms about potential competition under the deal, fearing that it could drive down prices in European markets. Despite these concerns, it remains unclear whether these countries will join France in opposing the agreement.
France is also seeking support from the Netherlands, which voted against the deal in 2020. Dutch trade minister Reinette Klaver reiterated the country’s opposition, citing concerns over the impact on agriculture. However, the Netherlands’ position could shift depending on future negotiations.
In contrast, Germany and Spain strongly endorse the agreement, viewing it as an opportunity to expand exports, particularly in industries such as automotive, chemicals, pharmaceuticals, and agriculture. For Spain, high-value agricultural exports like olive oil and Serrano ham are key benefits of the deal.
As the December meeting in Uruguay approaches, the debate over the EU-Mercosur agreement intensifies. With France aiming to block the deal and Germany and Spain pushing for its approval, the outcome of these negotiations could shape Europe’s trade relations with South America for years to come.
