Mercosur Deal: What’s at Stake for EU Farmers

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Why the EU–Mercosur Trade Deal Divides Europe

The EU–Mercosur trade agreement aims to create one of the world’s largest free trade areas between the EU and the Mercosur bloc Brazil, Argentina, Uruguay and Paraguay, but it remains one of the most controversial trade deals under discussion, according to analysis by Reuters.

Supporters argue the deal would boost EU exports of cars, machinery and industrial goods to South America, while giving Mercosur countries improved access to European markets. In return, the EU would open greater access to agricultural imports, including beef, poultry and sugar.

Opposition has been strongest from farmers and environmental groups across Europe, who warn that increased imports of South American beef could undercut EU producers operating under stricter environmental, welfare and food safety rules. Concerns have also been raised about deforestation, climate commitments and the enforceability of sustainability clauses.

The deal has repeatedly stalled due to political resistance within EU member states, and continues to face scrutiny as governments balance trade ambitions against domestic agricultural and environmental pressures.


Source: Reuters | 9 January 2026

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