EU-Mercosur trade deal postponed to 2026
EU Commission President Ursula von der Leyen had hoped to sign a free trade agreement with the Mercosur countries this Saturday in Brazil. However, a minority led by France and Italy has formed in the European Council in Brussels and blocked the move in view of fierce protests from the agricultural sector. Now, the deal, which has been under negotiation for 25 years, has been postponed to January.
Focus on gains, not losses
The Mercosur debacle exposes a general weakness in the EU, Expresso writes:
“The essence of the European 'problem' lies in its unwillingness to accept losses. Every transformation in the energy, military, trade or production sectors entails losses. But it also brings gains, and this is what we need to focus on. A trade agreement with Brazil, Argentina, Uruguay and Paraguay has enormous advantages for the EU. How can we reform Nato – or become independent – rethink trade agreements, secure peace in Europe and change our energy profile without being prepared to spend more and accept some losses?”
Europe needs new friends
For Rzeczpospolita, the Mercosur partnership takes precedence over European farmers' interests for strategic reasons:
“Mercosur countries will buy EU products with high profit margins. The Mercosur countries are a new alliance that Europe urgently needs because we have just lost the United States, even if this sounds so apocalyptic that the written sentence alone seems unreal. But, unfortunately, that is the case. We need Mercosur's sales market and critical raw materials, and 450 million Europeans need friends on the international stage. Farmers must not be allowed to ruin this.”
Angry farmers led by the right
The French far-right Coordination Rurale is among the farmers' associations protesting the Mercosur agreement. RFI's Romanian service comments:
“Coordination Rurale is vehemently anti-EU despite the fact that most of the organisation's members are dependent on European subsidies. It rejects free trade, even though France is one of the world's leading agricultural exporters. ... It claims that this policy is part of a conspiracy aimed at destroying the already struggling French beef industry in order to 'punish' it for its opposition to the Mercosur free trade agreement.”
What exactly is the issue?
The taz considers the farmers' criticism exaggerated:
“The EU is the world's largest exporter of agricultural and food products, with a strong trade surplus in this sector. Europeans are world champions in the export of cheese and pork. It's true that, for example, wages in Germany are higher than in Brazil. But South American farmers can only dream of agricultural subsidies at EU levels: Europeans pamper their farmers with 55 billion euros per year. Anyone who subsidises and exports so much should not complain about a few additional imports from the Mercosur countries.”
A counterproductive reprieve
Libération criticises President Macron’s opposition to the deal:
“Between the long and short term, Emmanuel Macron has made his choice: he prefers to sacrifice geopolitical goals to safeguard his political interests in France, or whatever remains of them. … Ursula von der Leyen announced on Thursday the postponement to January. Macron has thus achieved a brief breathing space. But France continues to damage its image and risks sowing discord in the EU. What a wonderful Christmas present for Vladimir Putin and Donald Trump!”
Think big, not small-minded
Ouest-France warns that Europe must not alienate potential partners:
“There are those in Europe who argue that we should lower our own standards – a downward adjustment to avoid being overtaken. If we can no longer impose our standards on the rest of the world, we can at least try to earn respect by securing our borders. This is where Europeans should focus their efforts, not on renegotiating safeguard clauses that the Mercosur countries reject. If we continue to keep them waiting, they will turn their backs on us and do business with the Americans or the Chinese instead. And that is precisely what the latter are waiting for.”