EU-Mercosur deal: more exports and safeguards for farmers

The European Union has approved the major free trade agreement with Mercosur, paving the way for the world’s largest trade area with over 700 million consumers. After the preliminary deal in 2019 and a more concrete one in December 2024, the European Commission has presented the final proposal: European exports to South American countries could grow by up to 39% (€49 billion), supporting over 440,000 jobs.

The agreement provides for the elimination of tariffs on over 91% of European goods, including automobiles, machinery, pharmaceuticals, clothing, and agri-food products such as wine, spirits, chocolate, and olive oil. Geographical indications will also benefit: 344 European products will be protected from imitations.

To address concerns in the agricultural sector, the EU has introduced strict limits on preferential imports of beef (99,000 tons, equal to 1.5% of annual consumption) and poultry, as well as a €6.3 billion common safety net to manage potential crises. France, which had opposed the deal, is now more favorable thanks to a safeguard clause; Italy also welcomes the guarantees, while reserving judgment on their effectiveness together with farmers’ associations.

Wine producers, major exporters to South America, are enthusiastic. Coldiretti is more cautious, deeming the protections still insufficient, while Confagricoltura calls for room for improvement in the most vulnerable sectors: beef, poultry, rice, corn, and sugar.