The European Union has cleared the largest free trade agreement in its history with a bloc of Latin American countries, ending 25 years of negotiations but igniting immediate opposition from farmers, environmentalists, and political factions across Europe.
The Mercosur deal, agreed in principle on Friday with Argentina, Brazil, Paraguay, and Uruguay, sparked protests in Poland, France, Greece, and Belgium, where farmers blocked major roads in Paris, Brussels, and Warsaw. Opposition parties in France, spanning both the far left and far right, seized on the agreement to challenge President Emmanuel Macron, tabling a motion of no confidence against his government.
The approvals from EU member states followed months of complex negotiations in Brussels. The deal nearly collapsed in the final days before Christmas when opposition in Italy threatened to derail the agreement. In the end, France, Poland, Austria, Ireland, and Hungary voted against it, while Belgium abstained. Italy’s Prime Minister Giorgia Meloni, previously considered a potential spoiler, backed the agreement, allowing it to pass under qualified majority voting rules.
While member state approval marks a major step, the European Parliament must still ratify the deal before it can enter into force. Trade falls under the exclusive competence of the European Commission, and EU Commission President Ursula von der Leyen is expected to travel to Paraguay on Monday to formally sign the agreement.
Proponents of the deal argue it strengthens the EU’s economic ties with Latin America, a region increasingly courted by China amid global trade disruptions triggered by former U.S. President Donald Trump’s policies. Supporters say it will also reduce European reliance on Chinese imports of critical minerals and rare earths essential to the automotive and technology sectors.
Brazil is estimated to hold 20% of the world’s reserves of graphite, nickel, manganese, and rare earths, and accounts for 94% of global niobium reserves, a metal used in aerospace applications. Argentina ranks as the world’s third-largest producer of lithium, a crucial component in electric vehicle batteries.
“The deal is not only about economics. Latin America is a region of intense competition for influence between Western countries and China,” said Agathe Demarais, senior policy fellow at the European Council on Foreign Relations. “Failing to sign the EU-Mercosur agreement risked pushing Latin American economies closer to Beijing’s orbit. It also signals that Europe is serious about diversifying its export markets beyond the U.S.”
However, European farmers fear the deal will devastate domestic agriculture. Janusz Sampolski, a Polish farmer, told Agence France-Presse, “This will kill our agriculture in Poland. We will be dependent on supply chains from other countries, which could threaten food security in the event of war.” Farmers in the beef, poultry, and grain sectors voiced similar concerns about competition from cheaper imports.
Environmental groups also expressed alarm. The Climate Action Network warned that the agreement could exacerbate deforestation and human rights abuses in sensitive ecosystems. “The deal goes beyond tariffs and quotas,” the network said. “It will incentivize more beef, soy, and timber production in areas already prone to deforestation, with serious environmental consequences.”
The Mercosur pact, decades in the making, represents a historic milestone for EU trade policy. Yet its passage underscores the ongoing tensions between economic interests, environmental stewardship, and domestic political pressures, highlighting the complex balancing act Brussels faces in shaping a global trade agenda while maintaining support at home.
