Heightened geopolitical instability, including war in neighbouring regions and trade tensions with our closest ally the United States, means that now is the moment to finalise a trade agreement with Mercosur.
This partnership with four South American countries would establish the largest free trade zone in the world, bringing more value and choice for European consumers, and open a strategic channel to South America with benefits to Europe’s energy and food security.
Currently, Mercosur’s four member states impose tariffs of up to 35% on European Union wines, spirits and other beverages, 28% on dairy, and 20% on chocolate. A free trade agreement would eliminate these tariffs, saving exporters over €4 billion in customs duties annually.
EU agri-food exports to Mercosur already total €3.3 billion as of 2024; tariff-free access would allow high-margin specialties – such as olive oil, cheese and premium drinks – to expand significantly.
Delicate sectors under Commission protection
The European Commission has developed a solution to protect delicate sectors. For sensitive products like meat and poultry, the agreement includes carefully calibrated quotas. Beef imports will be limited to 99,000 tonnes at a 7.5% duty, representing just 1.5% of EU beef production and less than half of current imports from Mercosur.
For poultry, the quota of 180,000 tonnes accounts for only 1.3% of EU production. Quotas for sugar and rice each represent barely 1% of EU consumption, with honey at 10%. EU rice self-sufficiency is below 50%, meaning that additional imports help fill an existing gap.
A bilateral safeguard clause is included in the deal, acting as an insurance policy in the event of serious market disruptions. In the case of extreme damage to EU producers, this clause would provide financial compensation.
EU control over sanitary concerns
The EU maintains strict controls on issues such as antimicrobial resistance and sanitary and phytosanitary standards. No product that compromises the health or safety of Europeans will be allowed into the EU. This applies to all trade agreements, preferential or otherwise.
During negotiations of the EU-Canada trade agreement, ratified in 2016, similar scepticism emerged, with concerns that the agreement would harm European agri-production and pose health risks.
Since its provisional entry into force in 2017, EU agri-food exports to Canada have increased by an estimated €400 million, bringing the EU’s 2023 surplus to €2.1 billion. The agricultural sector has been one of the key beneficiaries of this agreement.
Mercosur makes the EU a growing global player
Beyond agricultural benefits, a deal with Mercosur would extend Europe’s geopolitical reach. EU exports to the bloc already support 756,000 EU jobs and are projected to grow significantly with a deal, enhancing competitiveness and reducing reliance on the US and China.
Preferential access to critical raw materials will also enhance energy security and supply chain resilience, which are both essential for the green transition.
The debate must be put into perspective: the EU is a major global player in agri-food trade, with a trade surplus of €70 billion in 2023 and its agriculture sector consistently benefits from trade agreements.
Concerns about sensitive agricultural products are understandable but should not overshadow the significant opportunities the Mercosur agreement presents, especially as they are addressed through tariff rate quotas, safeguard clauses and financial insurance mechanisms.
Blocking the deal on the basis of speculative concern – when such agreements have had the opposite effect – would not only limit benefits for other agricultural sectors and European food security, but also hinder the EU's geopolitical, energy and environmental ambitions.
The Commission must bring the deal forward for ratification, ensuring Europe avoids further setbacks and begins reaping the benefits.
Read the case for why the EU should not sign the Mercosur trade agreement by MEP Saskia Bricomont here.
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