European Commission promises protection for farmers in Mercosur agreement

In Brussels, on September 3, 2025, the European Commission made significant announcements regarding the recently discussed trade agreement with Mercosur countries: Argentina, Brazil, Paraguay, and Uruguay. This agreement is projected to spur a remarkable increase in annual exports from the European Union by 39%, translating to an additional 49 billion euros. Such a substantial hike in trade is principally attributed to a reduction in customs duties that have been obstructive for EU exports, specifically relating to major industrial products like cars, machinery, and pharmaceuticals. To ensure that this trade deal remains favorable to the EU, the Commission highlighted a potential growth of at least 50% in agri-food exports with the new tariffs. Key products expected to benefit include wine, spirits, chocolate, and olive oil, backed by protections against imitations and competition that is deemed unfair. This is especially important for 344 products that have geographical indication protection, safeguarding their quality and branding. However, the agricultural sector's substantial objections to the agreement prompted the European Commission to promise strong safeguards aimed at protecting farmers from an undesired surge of imports from the Mercosur bloc. European Commissioner for Trade, Maros Sefcovic, assured press members that the Commission took into account feedback from various stakeholders, including agricultural representatives, by promoting what they call a ‘new Mercosur agreement’. These safeguards are seen as critical to maintaining a balance between fostering trade growth and ensuring the livelihood of farmers in the EU. This new trade agreement represents one of the largest free trade areas globally, which may reshape trade dynamics between Europe and Latin America, but it also places significant responsibility on the Commission to ensure that the agricultural sector is not negatively impacted. As discussions proceed, the proposal will be presented to the Council of the European Union for further evaluation, illustrating the complexity and the various interests involved in establishing a functional and fair agreement.