EU Gives Green Light to Long-Delayed South American Trade Agreement

Farmers Voice Concerns Over EU-South America Trade Pact

Farmers in Poland protest a newly approved trade agreement, worried about its potential impact on their livelihoods. The deal has sparked resistance among those who fear it may disadvantage agricultural producers within the European Union.

Photo credit: Omar Marques/Getty Images

EU Finalizes Landmark Trade Agreement with Mercosur

After nearly a quarter-century of negotiations, European Union nations have given the green light to a significant trade pact with South American countries, according to sources familiar with the talks.

This approval marks a diplomatic win for the EU, especially as it navigates complex relations with the United States during President Trump’s tenure.

Officials from the European Commission, the EU’s executive branch, have worked to secure approval for the agreement this year. The deal, reached with Mercosur nations—Brazil, Argentina, Paraguay, and Uruguay—in December 2024, is set to create one of the largest free-trade zones globally.

Despite its economic potential, the agreement has met resistance from countries like France, which worry about negative consequences for EU farmers. The pact would eliminate tariffs on European exports such as automobiles and wine, while making it easier for South American agricultural products, including beef, to enter the EU market.

Most EU member states supported the agreement, though France, Poland, Austria, Ireland, and Hungary voiced objections, according to those close to the discussions. Belgium chose not to vote.