Europe seals massive South American trade agreement after quarter century of Talks

European Union countries on Friday backed a massive trade agreement with South American nations, ending more than 25 years of talks and months of difficult negotiations to get enough countries on board.

The deal with Mercosur, a group that includes Argentina, Brazil, Paraguay, and Uruguay, marks the largest free trade agreement the EU has ever pursued. At least 15 countries representing 65% of the bloc’s population voted in favor, meeting the threshold needed for approval, according to EU sources and diplomats.

France leads opposition as farmers protest

With Donald Trump ready to reshape global trade, the European Commission and countries like Germany and Spain say the agreement will help make up for business losses from U.S. tariffs. They also argue it will reduce dependence on China by providing access to critical minerals.

But France, the EU’s biggest agricultural producer, voted against the deal. The country says the agreement will increase imports of cheaper food products like beef, poultry, and sugar, hurting domestic farmers. Austria, Hungary, Ireland, and Poland also voted no, while Belgium did not take a position. An EU diplomat and Poland’s agriculture minister said 21 countries supported the agreement.

Farmers have taken to the streets across the EU in protest. On Friday, they blocked highways in France and Belgium and marched in Poland.

German Chancellor Friedrich Merz called Friday’s vote a “milestone” and said the deal would benefit Germany and Europe.

“But 25 years of negotiations is too long. It’s vital that the next free trade agreements are concluded swiftly,” he said in a statement.

EU member states have until 5 p.m. Brussels time (1600 GMT) to submit written confirmation of their votes. This would allow Commission President Ursula von der Leyen to sign the agreement with Mercosur partners in Asuncion, possibly next week.

The European Commission finished negotiations on the deal a year ago. The European Parliament will also need to approve the accord before it takes effect.

Deal to eliminate billions in tariffs

The free trade agreement would be the EU’s biggest in terms of tariff cuts, eliminating 4 billion euros ($4.66 billion) of duties on its exports. Mercosur countries currently charge high tariffs, including 35% on car parts, 28% on dairy products, and 27% on wines.

The EU and Mercosur hope to expand goods trade worth 111 billion euros in 2024. EU exports mainly consist of machinery, chemicals, and transport equipment, while Mercosur focuses on agricultural products, minerals, pulp, and paper.

To win over skeptics, the European Commission put in place safeguards that can stop imports of sensitive farm products. It has strengthened import controls, particularly for pesticide residues, created a crisis fund, sped up support for farmers, and promised to reduce import duties on fertilizers.

The concessions were not enough to convince Poland or France, but Italy changed its position from a no in December to a yes on Friday.

“It seems to me the balance that has been found is sustainable,” Italian Prime Minister Giorgia Meloni told a press conference.

Mathilde Panot, lower house chief of the far-left France Unbowed party, said on X that France had been “humiliated” by Brussels and on the world stage.

French far-right and far-left parties plan to launch no-confidence motions in the government over the expected approval.

French Agriculture Minister Annie Genevard said the battle is not over and promised to fight for rejection by the EU assembly, where the vote could be close.

European environmental groups also oppose the accord, saying commodities shipped to Europe will often come from deforested land.

“The simple truth is that this unpopular deal is a disaster for the Amazon rainforest and no progressive MEP that is committed to forest protection should ever support it,” Greenpeace EU campaigner Lis Cunha said.

German Social Democrat Bernd Lange, the chair of parliament’s trade committee, said he believes the deal will pass, with a final vote most likely in April or May.

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