The European Union’s free-trade deal with the South American bloc Mercosur is facing a crucial test this week, as France launches a last-ditch effort to derail the signing of the landmark agreement. European Commission chief Ursula von der Leyen is set to sign the deal in Brazil on Saturday, but she first needs approval from EU member states. The agreement, 20 years in the making, would create the world’s largest free-trade area, allowing the EU to export more vehicles, machinery, wines, and spirits to Latin America, while facilitating the entry of South American beef, sugar, rice, honey, and soybeans into Europe.
France, the pact’s leading critic, has urged a postponement, citing concerns over the impact on its agricultural sector. The country is seeking robust safeguard clauses, tighter import controls, and more stringent standards for Mercosur producers. Up to 10,000 farmers are planning to protest in Brussels during a leaders’ summit on Thursday and Friday, highlighting the contentious nature of the deal.
Despite France’s opposition, the deal is likely to proceed, as it only needs support from a weighted majority of EU countries to pass. Powerhouse Germany, Spain, and the Nordic countries are strong backers of the pact, eager to boost exports amid Chinese competition and US tariffs. However, disagreements over the deal are leaving some EU officials uneasy, with one diplomat warning of a “serious European crisis” if a compromise is not reached.
The European Parliament is set to vote on “safeguard” measures aimed at reassuring farmers on Tuesday, which may further complicate the approval process. The commission has announced tighter checks on farm imports and pledged to update rules on pesticide residues to address concerns. Von der Leyen intends to sign the deal in Brazil, but the battle is far from over, as the European Parliament must still give its final approval in early 2026.
The outcome of the vote is uncertain, with national interests weighing heavily. Insiders expect a close vote, with opposition from French and Polish lawmakers, as well as far-left and far-right groups. The deal’s fate hangs in the balance, as the EU navigates the complex web of trade negotiations and internal politics. The signing of the EU-Mercosur trade deal is a significant step towards creating a major free-trade area, but its approval is far from guaranteed.
