Building on recent calls for delays from France and others, the EU has secured additional safeguard clauses for agriculture to advance the long-stalled free trade agreement with Mercosur. Brazil presses for swift approval ahead of the planned Saturday signing, as reservations persist among member states.
Following opposition from countries like France—where farmers fear competition from lower-standard South American imports—the EU's member states and European Parliament reached a compromise in Strasbourg on enhanced protections for European agriculture. These safeguards allow temporary suspension of tariff benefits if Mercosur imports (from Brazil, Argentina, Uruguay, and Paraguay) surge harmfully or cause excessive price drops for EU producers. An investigation triggers if volumes exceed eight percent annual growth.
Key monitored products include beef, poultry, rice, honey, eggs, garlic, ethanol, citrus, and sugar. The Danish EU Council Presidency announced bi-annual impact reports. Proponents see this enabling the Saturday signing in Brazil, requiring approval from at least 15 of 27 member states (65% of EU population).
France and Italy remain cautious, with Poland and Austria already opposing. Italy's stance may prove decisive. Brazil's President Luiz Inácio Lula da Silva warned Wednesday: "If we don't do it now, Brazil won't make a deal while I'm president" after 26 years of talks.
The deal promises a free trade zone for over 700 million people, countering protectionism. Critics highlight risks to EU farmers and South American deforestation. SPD's Bernd Lange hailed it: "Open trade and strong protection for European agriculture are not mutually exclusive." Formal acceptance is expected next.