European ministers achieve controversial EU-Mercosur deal in defiance of industry demands

European Commission president Ursula von der Leyen has announced that the controversial trade agreement with the Mercosur bloc, which was 25 years in the making, has been achieved. Talks concluded at a final summit in Uruguay today. She describes the deal as a political necessity and economic opportunity.

The deal joins EU nations with the Mercosur countries of South America, which include Argentina, Bolivia, Brazil, Paraguay and Uruguay. Associate countries include Chile, Colombia, Ecuador, Guyana, Peru, and Suriname. Venezuela is also a full member but was suspended in 2016.  

If formally approved by all EU countries, the agreement will open up a trading bloc comprising almost 800 million people and 25% of global GDP. Tariffs and other trade barriers will be reduced, and the export of goods will become easier. 

Industry opposition in much of the F&B sector has been fierce, with agricultural leaders — notably in France — saying the arrangement will flood Europe with cheap, substandard produce, price European farmers and manufacturers, and deepen the bloc’s environmental and human health footprint. 

Food Ingredients First looked at opposition from different segments and spoke with industry representatives on Friday shortly before the agreement.  

The deal will now need to be ratified by the European Parliament, which may prove difficult given the intensity of opposition in countries like France, Poland and Ireland. These nations must now form an anti-deal coalition to derail the plans. 

However, lawmakers may attempt to split and speed up the ratification process.  

Following the agreement, von der Leyen announced that around 60,000 companies stand to benefit from ease of export and that farmers’ concerns have been heard and are being addressed with “robust safeguards.”