Farmers have demonstrated against the agreement with South America’s Mercosur bloc, as they worry it might increase imports of lower-cost food
On Saturday, the European Union and the South American economic bloc Mercosur finalized a free trade agreement, moving forward with the pact even though EU farmers have protested (over concerns about inexpensive imports) and several member states have opposed it.
European Commission President Ursula von der Leyen has characterized the deal with the bloc—made up of Argentina, Brazil, Paraguay, and Uruguay—as a “clear and deliberate choice,” noting that the EU “chooses fair trade over tariffs,” and opts for “a productive long-term partnership over isolation.”
This trade agreement comes six months after von der Leyen and US President Donald Trump signed a deal that placed a 15% tariff on the majority of EU exports to the bloc’s transatlantic ally.
Earlier this month, Trump promised to impose extra tariffs on eight European NATO countries that are against his plans to buy Greenland. A 10% tariff is set to go into effect on February 1, then increase to 25% in June, and stay in place until a “complete and total purchase” of the Arctic island is achieved.
After 25 years of talks, the trade agreement with the Latin American economic bloc gained the backing of most EU countries—even though France and Poland have opposed it—Euroactive reported on Saturday. The pact has encountered broad resistance from the agricultural industry, as farmers across Europe have held large-scale protests against it.
Protests are reportedly scheduled to continue on Tuesday in Strasbourg, where around 5,000 farmers and 1,000 tractors are expected to gather outside the European Parliament. A parliamentary vote that might challenge the agreement at the EU’s Court of Justice is set for Wednesday.
The European Council states that the agreement will establish the world’s biggest free trade area, with a market of over 700 million consumers. The EU is Mercosur’s second-largest goods trading partner, making up nearly 17% of the bloc’s total trade in 2024. In that year, EU exports to Mercosur totaled €55.2 billion, while imports from the bloc were €56 billion—resulting in a combined total of more than €111 billion, which represents over 36% growth since 2014.