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DW analysis: EU countries give green light to Mercosur
2026-01-09 21:13:40 / BOTA
Representatives of European Union member states in Brussels on Friday paved the way for a free trade agreement with Mercosur and South American countries.
A majority of the 27 EU member states, representing 65% of the bloc's population, have agreed to move forward with the proposal. European Commission President Ursula von der Leyen could sign the deal with the EU's Mercosur partners, Brazil, Paraguay, Argentina and Uruguay, as early as next week. The deal still needs to be approved by the European Parliament before it can enter into force.
Not all EU members agree
Although the deal will be approved by the necessary majority, some key players have not supported it. French President Emmanuel Macron confirmed on Thursday evening that his country would not approve the deal, stating that French political forces were “unanimous” in rejecting the agreement. “France is in favor of international trade, but the EU-Mercosur agreement is an agreement from another era, negotiated for too long on very outdated bases,” Macron said in a post on the X platform.
The EU-Mercosur agreement, which if ratified would create one of the world's largest free trade blocs, was originally scheduled to be signed in Brazil in December. However, it faced resistance from several member states, including Italy, France and Poland, and had to be postponed.
Friedrich Merz praises "historic" agreement
Germany, which has long supported the deal, welcomed the agreement. Berlin hopes the deal will offer new market opportunities for the country's economy, which is dependent on exports and has struggled to emerge from a long period of stagnation.
“The approval of the EU-Mercosur Agreement is a turning point in European trade policy and an important signal of our strategic sovereignty and our ability to act,” said Chancellor Friedrich Merz.
German Finance Minister Lars Klingbeil also hailed the deal as a much-needed boost to free trade. “While others are isolating themselves and pursuing increasingly aggressive trade policies, we are focusing on new partnerships,” Klingbeil said.
The agreement aims to diversify trade in the face of US tariffs and will bring EU member states closer to Brazil, Paraguay, Argentina and Uruguay, eliminating import tariffs on more than 90% of products.
The EU says companies in the community will save billions in tariffs each year and that this will help exports of vehicles, machinery, wines and spirits to Latin America.
"This is the largest free trade agreement we have ever negotiated," EU Trade Commissioner Maros Sefcovic said on Wednesday after the talks.
“We have in our hands the opportunity to send an important message to the world in defense of multilateralism and to strengthen our strategic position in an increasingly competitive global environment,” Brazilian President Luiz Inácio Lula da Silva said in December.
There has been strong resistance from farmers, but despite this, the German and Spanish governments are among those most supportive of the agreement.
Farmers have expressed concern that the deal threatens to undermine their businesses with cheaper imports, but Berlin and Madrid say the agreement will be a very positive boost for industries struggling with Chinese competition and tariffs in the United States.
On Thursday, farmers took their tractors out onto the streets, blocking roads in Paris and parts of Germany./DW
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