Reports indicate that the European Union is anticipated to cast its vote in mid-December regarding the extensively negotiated trade agreement with Mercosur, the South American bloc that includes Argentina. The European Commission, serving as the executive body of the EU, is urging member states to approve the agreement prior to the forthcoming Mercosur summit scheduled for December 20 in Foz do Iguaçu, Brazil. Brazil’s President Luiz Inácio Lula da Silva stated last week that the agreement would be concluded at the event. EU governments are currently anticipating a session of the European Parliament on December 16, during which Members of the European Parliament will cast their votes on a set of safeguard measures designed to alleviate the concerns of farmers. Agricultural organizations typically express opposition to the agreement, with France, the most vocal critic, urging Brussels to provide additional assurances.
The EU Commission put forth the safeguard measures in September. The measures encompass enhanced oversight of agricultural imports potentially influenced by the agreement, including beef, poultry, rice, and ethanol, along with the provision for market intervention should imports disrupt price stability. Member states have already endorsed the safeguard clause, which will be subject to examination by MEPs in mid-December.
Should the EU Parliament endorse the plan, it is anticipated that member states will subsequently move forward with a vote on the comprehensive trade agreement, likely scheduled between December 16 and 19, according to a diplomat. The decision will be determined by a qualified majority vote. France stands as the primary critic; however, it is improbable that Paris will be able to assemble a blocking minority against the agreement, which enjoys robust support from Germany and Spain.
Farmers’ unions are set to stage a significant protest in Brussels on December 18, aligning with a summit of EU heads of state and government. Even if member states endorse the agreement next month, complete ratification would still necessitate a distinct vote in the European Parliament, probably in early 2026, and the result is anticipated to be narrowly contested. The trade agreement is poised to facilitate a rise in EU exports of automobiles, machinery, wine, and spirits to Argentina, Brazil, Uruguay, and Paraguay. In exchange, Europe would facilitate access for South American beef, sugar, rice, honey, and soya – a scenario that has raised apprehensions in various European agricultural sectors.