European Commission promises strong safeguards for farmers impacted by Mercosur deal

In Brussels, on September 3, 2025, the European Commission communicated its commitment to protect farmers from potential disruptions arising from the recently negotiated agreement with the Mercosur countries: Argentina, Brazil, Paraguay, and Uruguay. This trade deal is projected to significantly benefit the European Union's economy, with forecasts suggesting an annual rise in exports of 39%, translating to an additional 49 billion euros. The agreement aims to form the largest free trade area globally by lowering customs duties that pose substantial barriers for EU exports across various sectors, including automobiles, machinery, and pharmaceuticals. Particularly noteworthy is the anticipated surge in agri-food exports, which could experience growth of at least 50% thanks to optimized tariff structures. Wine, spirits, chocolate, and olive oil are expected to be key beneficiaries of this agreement. However, the European Commission recognizes the concerns of the agricultural sector regarding potential import spikes from Mercosur countries that could undermine local producers. To address these concerns, the European Commissioner for Trade, Maros Sefcovic, emphasized the introduction of safeguards to shield European farmers from harmful increases in imports which have been a point of contention among critics of the trade agreement. These assurances are pivotal as they reflect the Commission's willingness to listen to and incorporate feedback from various stakeholders, including agricultural representatives and member states, thereby ensuring that the agreement is just and advantageous for all involved. The Mercosur agreement is poised to reshape trade relations and dynamics between the EU and Latin America. By creating favorable trade conditions, it fosters economic growth while attempting to ensure fairness in the agricultural sector, which remains critical to many EU member states. The effective implementation of strong safeguards will be crucial in maintaining the support of farmers who feel threatened by increased competition due to the deal, as the Commission moves forward with the discussions and proposals to the Council of the European Union.