The European Union is postponing a major free-trade agreement with South American nations amid intense protests by farmers and last-minute pushback from France and Italy, which threatened to block the pact, seen by supporters as a significant geopolitical initiative for both continents.
Top EU officials had planned to sign the EU-Mercosur deal in Brazil this weekend, after more than two decades of negotiations. Following a tense EU summit, European Commission President Ursula von der Leyen on Friday stated that the signature will be delayed “a few extra weeks to address some issues with member states”, according to AP.
The move came just hours after farmers took to the streets of Brussels in tractors, blocking roads and setting off fireworks to protest the trade deal, leading police to respond with tear gas and water cannons.
Farmers protest
Protesters hurled potatoes and eggs and engaged in a heated standoff with authorities. They also burned tires and a wooden mock coffin marked with the word “Agriculture”, creating a thick black smoke that mixed with the white clouds of tear gas. The European Parliament evacuated some staff due to damage caused by the demonstrators.
A 23-year-old French farmer Armand Chevron said, “We are fighting to defend our jobs.”
Hundreds of farmers, including 60-year-old Pierre Vromann, arrived on tractors, which they used to block roads around major EU institutions.
Vromann, who raises cattle and grains near Waterloo, Belgium, said the Mercosur deal would be “bad for farmers, bad for consumers, bad for citizens and bad for Europe.” Other farmers traveled from as far as Spain and Poland to join the protest.
How did France and Italy react?
French President Emmanuel Macron welcomed the delay, as did French farmers’ unions, who are concerned the deal could jeopardize their livelihoods. France had spearheaded opposition to the agreement between the EU and the five active Mercosur countries, including Brazil, Argentina, Uruguay, Paraguay, and Bolivia.
Italy voiced new reservations on Wednesday. Prime Minister Giorgia Meloni cautioned against moving forward with signing the agreement this week. She said early Friday that efforts are being made to delay the Mercosur summit, allowing additional time to address farmers’ concerns, implement necessary safeguards for Italian products, and ultimately make it possible to approve the deal.
EU–Mercosur trade deal
The new EU–Mercosur trade deal aims to strengthen economic ties by expanding two-way trade and investment while reducing both tariff and non-tariff barriers, with a particular focus on supporting small and medium-sized businesses.
It also seeks to establish clearer, more reliable frameworks for trade and investment by reinforcing rules in areas such as intellectual property protections, including geographical indications, food safety regulations, competition policy, and sound regulatory practices.
In addition, the deal is designed to advance shared priorities on sustainability, including improving workers’ rights, addressing climate change, protecting the environment, and promoting responsible business behavior.
Von der Leyen must have the support of at least two-thirds of EU member states to finalie the deal, and Italy’s resistance would give France sufficient votes to block her from signing.
EU estimates show that European exports to Mercosur are projected to increase by 39 percent, while exports from Mercosur to the EU could rise by 17 percent, according to AFP. By 2040, the agreement is expected to add 77.6 billion euros to the EU’s GDP and 9.4 billion euros to Mercosur’s combined GDP.
