Novinite.com
09 Jan 2026, 19:46 GMT+10
EU member states have given political approval for the long-delayed free trade agreement between the European Union and the Mercosur bloc, clearing a key procedural hurdle after more than two decades of negotiations. The decision was taken on Friday in Brussels by EU ambassadors, with a qualified majority of the 27 member states backing the deal, representing at least 65 percent of the EU's population.
With the Council's approval secured, European Commission President Ursula von der Leyen is now in a position to formally sign the agreement with Brazil, Argentina, Paraguay, and Uruguay, potentially as early as next week. The pact, however, cannot enter into force until it receives consent from the European Parliament, and certain elements may still require ratification at national level within the EU.
Despite reaching the required majority, the agreement remains politically divisive. France, Poland, Austria, Hungary, and Ireland voted against, while Belgium abstained. Italy, which had previously expressed reservations and pushed for a delay last month, ultimately voted in favor. The outcome undermined French efforts to build a blocking minority, even as Paris signaled it would continue to oppose the deal in the next stages of the process.
French President Emmanuel Macron confirmed late Thursday that France would reject the agreement, saying opposition to the deal was unanimous across the country's political spectrum. While reiterating France's support for international trade in principle, Macron argued that the EU-Mercosur agreement was outdated, having been negotiated for too long and on foundations no longer suited to today's economic and environmental realities.
The agreement, first intended to be signed in Brazil in December, was postponed due to resistance from several EU capitals. If ratified, it would create one of the largest free trade areas in the world, encompassing more than 700 million people across Europe and Latin America. European companies would gain preferential access to a Mercosur market of around 280 million consumers, where approximately 30,000 EU firms are already active.
Under the deal, import tariffs would be removed on more than 90 percent of traded goods, a move the European Commission says would save EU businesses billions of euros in duties each year. Key European exports expected to benefit include vehicles, machinery, aviation products, as well as wines, spirits, cheese, and other agricultural goods. Supporters also see the agreement as a way to diversify trade links amid rising US tariffs and China's growing economic influence in Latin America.
EU Trade Commissioner Maros Sefcovic described the pact as the largest free trade agreement ever negotiated by the bloc, arguing it offers Europe a chance to reinforce its strategic position in an increasingly competitive global environment. Brazilian President Luiz Inacio Lula da Silva has similarly framed the agreement as a signal in defense of multilateralism, at a time of mounting trade tensions worldwide.
Agriculture remains the most sensitive issue. Farmers across several EU countries have strongly opposed the deal, warning that cheaper imports from South America could undercut domestic producers. On Thursday, protests intensified, with tractors blocking roads in Paris and parts of Germany. While tariffs would be phased out gradually, quotas would remain for competition-sensitive products such as beef, poultry, and sugar to limit market disruption.
Germany and Spain have been among the strongest backers of the agreement, arguing it would support European industries struggling with Chinese competition and trade barriers in the United States. To address agricultural concerns, EU ambassadors approved additional safeguard mechanisms allowing tighter monitoring of imports and rapid intervention if serious market disruptions occur.
In recent months, the European Commission has also introduced concessions aimed at winning over hesitant member states and calming farmer opposition. These include early access to ?45 billion in Common Agricultural Policy funds from 2028, equivalent to roughly BGN 88 billion, and a freeze on the EU's carbon border tax for fertilisers. Environmental safeguards were strengthened by making compliance with the 2016 Paris climate agreement an essential element of the pact, allowing for partial or full suspension if commitments are breached.
Friday's approval was delivered through a written procedure, with EU capitals given until 5 p.m. to lodge objections and formalize the vote. Diplomats said changes at this stage were highly unlikely, describing the remaining steps as largely procedural. Von der Leyen is expected to travel to Latin America soon, potentially to Paraguay, to sign the agreement once Council procedures are completed.
After signing, the deal will be submitted to the European Parliament, where opposition, particularly from French representatives, is expected to be intense. Some sections of the agreement that go beyond EU trade policy would also require ratification by national parliaments. French opponents have already indicated they will focus their efforts on blocking or delaying approval at parliamentary level.
Negotiated over 25 years and repeatedly stalled, the EU-Mercosur agreement is now closer than ever to completion, even as political resistance and farmer unrest continue to cast uncertainty over its final adoption.
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