European Commission promises to shield farmers as Mercosur agreement approaches

In Brussels, on September 3, 2025, the European Commission announced its commitment to protecting farmers as it progresses with the Mercosur trade agreement. This landmark agreement, which involves Argentina, Brazil, Paraguay, and Uruguay, is anticipated to expand the European Union's exports by 39%, equating to an additional 49 billion euros. The Commission's proposals to the Council of the European Union are crucially aimed at reducing customs duties that currently hinder EU exports. Key sectors affected include essential industrial products such as cars and machinery, where tariffs reach up to 35% and 20%, respectively. The discussions around the agreement have revealed concerns from the agricultural community regarding potential disruptions resulting from the influx of imports from the Mercosur countries. In response to these concerns, European Commissioner for Trade, Maros Sefcovic, addressed the need for strong safeguards. He assured stakeholders in the agricultural sector that the Commission has listened to their feedback advocating for a fair agreement. The safeguards proposed intend to mitigate the risks of harmful import surges and provide necessary support to local producers. The trade agreement is set to create what is touted as “the largest free trade area in the world,” directly impacting agri-food exports and fostering a more competitive market for EU producers. The Commission forecasts that agri-food exports could increase by at least 50%, particularly in significant product categories such as wine, spirits, chocolate, and olive oil. Furthermore, 344 products currently under geographical indication protection will be safeguarded against imitation and unfair competition, bolstering the EU's position in these markets. As EU officials present this initiative, the aim remains to balance trade opportunities with protective measures for local industries. The developments surrounding the Mercosur agreement highlight the intersection of international trade and domestic agriculture, underlining the complexities that accompany such major trade deals. Ensuring that the benefits of this agreement translate to improved exports while maintaining a fair competitive landscape for European farmers will be a central aim as negotiations and discussions continue in the EU.