Briefing - International Agreements in Progress - EU-Mercosur Partnership Agreement: Trade pillar - 17-03-2025
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On 6 December 2024, the European Union (EU) and the four founding members of Mercosur – Argentina, Brazil, Paraguay and Uruguay – reached a political agreement on a free trade agreement that would form part of a wider Partnership Agreement including politBriefing - International Agreements in Progress - EU-Mercosur Partnership Agreement: Trade pillar - 17-03-2025
On 6 December 2024, the European Union (EU) and the four founding members of Mercosur – Argentina, Brazil, Paraguay and Uruguay – reached a political agreement on a free trade agreement that would form part of a wider Partnership Agreement including political dialogue and cooperation. The 2024 text of the trade pillar seeks to adjust an earlier political agreement of 28 June 2019 to EU demands for Mercosur to make stronger sustainability commitments, notably in respect to the Paris Agreement, and to Mercosur demands for the EU to grant greater policy space for Mercosur's industrial development. Against the background of growing geo-economic uncertainty and geopolitical tension, the agreement would be a strong signal in favour of multilateralism and against power politics in trade. It would create a strategic alliance between like-minded partners for building sustainable and resilient supply chains, including for the green and digital transitions. It could also allow the EU to regain some economic ground lost to China in the past decade. However, the trade pillar faces strong headwinds, notably for its potential environmental, climate change and food safety impacts. While the agreement enjoys the support of EU industry associations and sub-sectors of EU agriculture with offensive interests, EU farmers' associations with defensive interests have criticised it as an unfair 'cars for cows' deal. After the legal review and translation of the agreement, the Commission will submit to the Council proposals for Council decisions to sign and conclude the whole Agreement, revealing its ratification modalities. Second edition. The 'International Agreements in Progress' briefings are updated at key stages throughout the process, from initial discussions through to ratification. Source : © European Union, 2025 - EP Read more
