The European Union (EU) preliminarily passed the EU-Mercosur Agreement by 65% votes on January 9 in Brussels, per the RFI. Deal opponent, France, had earlier appeased protesting farmers by banning five pesticides in food imports.
Mercosur is a trading bloc in South America originally composite of Argentina, Brazil, Uruguay and Paraguay.
The deal is nevertheless yet to gain final approval in the EU parliament, where France vows to block it.
France, Austria, Ireland and Poland voted against – with Italy eventually switching from opposer to supporter.
Italy’s Chianti Wineries had notably in July 2025 showed willingness to trial the Mercosur market at the height of the Trump trade war.
But opposition to carving out to South America persists due to fears of substandard agricultural goods flooding into Europe.
Over the past week, some anti-Mercosur farmers managed to drive tractors to the iconic Arc de Triomphe in Paris in protest.
Then on January 7, France’s Prime Minister Sébastian Lecornu appeased farmers by banning fruit and vegetable imports containing certain pesticides.
Restricted pesticides include mancozeb for avocados and mangos, carbendazim for tomatoes, benomyl for wheat, thiophanate-methyl for citrus and glufosinate for potatoes.
Mango, avocado, guava, grape, citrus and apple imports with these substances now oughtn’t “enter the country,” per Il Sole 24 Ore.
The Mercosur trade agreement persuasively offers an import suspension approach on sensitive agricultural goods under which chemicals fall.
France is also keen to resist what it predicts as dawn of substandard sugar, poultry and beef into Europe.
4-billion Euro Tariff Savings
Germany and Spain are nevertheless backing the agreement, which is the largest ever for the EU regarding tariff savings.
After negotiating for 25 years, the European Commission finally tabled the deal in 2019, citing duty savings approximating €4 billion ($4.67 billion).
The commission argues that the agreement would open fresh markets, counter U.S. tariff losses and reduce mineral reliance on China.
To sweeten the deal further, the commission has included a clause to allow suspension of sensitive farm goods.
Some farmers in Germany and Belgium have particularly been demonstrating of late with respect to Mercosur trade replacing sensitive goods with cheap imports.
Finally, the block will also cut fertilizer import tariffs, which is one of the most important traded goods. To learn more about the EU-Mercosur agreement, peruse the below stats on existing trade between the two economic blocs.
EU-Mercosur Trade Statistics
The European Union and the Mercado Común del Sur (Mercosur) first made breakthrough in 2019 with a preliminary text (EUMETA). It was the penultimate step for trade after discussions had begun in 1999. This created the way for a joint free trade market comprising almost 800 million consumers on both sides of the Atlantic. This is about 20% of the global GDP in economic terms.
Trade gains include a reduction of about €4 billion ($4.67 billion) in tariffs that the EU currently pays to trade with the Mercosur. Argentina, Uruguay, Brazil and Paraguay in their part will enjoy the elimination of 91% in import duties from the EU.
For one, the Mercosur counts the EU as its 2nd largest trading party, with outbound exports worth €57 billion ($66.5 billion) for 2024. The EU reciprocates with exports to Mercosur worth €29 billion ($33.9 billion) (2023). It also keeps offshore investments in form of stocks worth €390 billion ($455.5 billion), as of 2023, per the European Commission.
Which agricultural commodities currently represent EU-Mercosur trade?
As of 2024, animal feed at €7.1 billion ($8.29 billion) represented the biggest agricultural import by the EU from the Mercosur. Coffee, tea, cocoa and spices clocked €5.2 billion ($6.1 billion), while oil seeds and tropical fruits finished at €3.7 billion ($4.32 billion).
How could the EU-Mercosur deal favor beverage trade?
According to the EU Commission, an agreement with the Mercosur would remove 20% beverage tariffs to major importer, Argentina. Finland’s Mallaskoski beer company would notably expand annual turnover of €1 million ($1.167 million) upon free market access.
Which Mercosur members trade the most with the EU?
Brazil ranks first in EU-Mercosur trade among South American nations. It had a cumulative [import and export] trade value worth €89.5 billion ($104.5 billion). This is even as Argentina contributed €16.4 billion ($19.2 billion) in 2024.