THE EU HAS put forward a huge trade deal with South American bloc Mercosur for approval by member countries and has sought to reassure chief critic France that is comes with “robust” safeguards to protect farmers.

The agreement to form a 700-million-customer free-trade area, the world’s biggest, is a key pillar in the EU’s push to open new markets in the face of US tariffs – but has faced Paris-led opposition over agricultural concerns.

It’s also faced criticism from Irish farmers, with the Irish Farmers’ Association today saying that it cannot “cannot countenance a deal that refuses to recognise the gap in standards between the EU and Brazil”.

Thomas Duffy, a farmer from Co Cavan, previously wrote in The Journal that farmers are concerned over the lower standards and traceability of Brazilian beef production, in particular the use of hormones and deforestation. 

This is a concern shared by French President Emmanuel Macron, who has fought against the deal over concerns that cheap beef and poultry from Brazil and Argentina could enter the European market.

IFA president Francie Gorman today remarked that “standards count for something, or they don’t”.

He added that during the last General Election, the government had agreed to opposed the deal and said that this “commitment has to stand”.

Gorman added that while the EU Commission “would probably like to push this through without much discussion”, Irish MEPs should be building alliances to “mount a blocking vote to the deal”.

“It’s both hypocritical and contradictory to insist on the highest standards for European producers only to allow Mercosur countries access without reaching the same standards,” said Gorman, who described this as a “watershed moment for farmers and the EU”.

However, European Commission President Ursula von der Leyen said the EU agrifood sector will “immediately reap the benefits of lower tariffs and lower costs”.

The Commission has denied that the deal will lead to cheap imports of South American beef or poultry that do not meet the EU’s green and food safety standards.

Chambers Ireland, representing businessess, wants the trade deal to be ratified.

“The Mercosur agreement has been on the table for far too long and it’s time to get things moving,” chief executive Ian Talbot said.

“These deals also present significant opportunities for sectors like the drinks sector and will further liberalise the services sector,” he said, calling on the Irish government to support the deal.

Sealing the deal

The Commission today gave its final go-ahead to the accord, which was struck with the Mercosur club bringing together Argentina, Brazil, Paraguay and Uruguay in December – 25 years after negotiations began.

But the text needs to be approved by at least 15 of the EU’s 27 member nations – and the European Parliament – to be formally adopted.

EU trade chief Maros Sefcovic told a press conference the commission hoped to complete the approval process by the end of the year.

The Mercosur deal is backed by a wide majority of countries skippered by Germany, keen to diversify trade away from the United States – which will maintain ramped-up tariffs on the EU despite a newly-struck trade deal.

The pact will see Mercosur countries progressively remove import duties on 91 % of EU goods including cars, chemicals, wine and chocolate, which currently face tariffs of up to 35%.

The Commission estimates it will increase EU annual exports to the four-country bloc by up to 39%, or €49 billion, and give Europe an edge over China and others vying for influence in the region.

“These are markets that haven’t opened up in this manner before to anyone, so there is a certain first-mover advantage for us,” a senior Commission official said on condition of anonymity.

In return, agricultural giant Brazil and its neighbours would be able to sell meat, sugar, honey, soybeans and other products to Europe with fewer restrictions, raising fears that a flow of cheaper farming goods would undercut European producers.

In a late concession to offset concerns, the Commission proposed a mechanism whereby preferential Mercosur access for farm products such as beef could be suspended if the imported market share or volumes rose by 10% or prices fell by that amount.

Paris sounded a conciliatory note today, with government spokeswoman Sophie Primas saying the Commission had “heard the reservations” of several countries.

She stressed, however, that Paris still needed to analyse the safeguard mechanism before giving its green light to the accord.

Brussels had also already said it planned to set up a $1-billion “reserve” for European farmers who might be negatively impacted.

The EU has sought to broaden its trade horizons, pitching itself as a reliable business partner, amid soaring global trade tensions and the volatility sparked by Trump’s tariff campaign.

Over the past year, it has launched trade deal talks with the United Arab Emirates and Malaysia and held summits with India and South Africa, among other initiatives.

Today, the commission also presented a revamp of its existing trade deal with Mexico.

The update will see Mexico remove the remaining tariffs on EU agrifood exports, such as cheese, poultry, pasta, apples, chocolate and wine, and provide access to critical raw materials, the commission said.

“In today’s uncertain geopolitical climate, diversifying our supply chains and deepening partnerships with trusted allies, partners and friends is not a luxury, it is a necessity,” trade chief Sefcovic told reporters.

-With additional reporting from © AFP 2025