EU expects imminent signing of Mercosur trade deal despite ongoing resistance

The European Union is preparing for the long-awaited signing of the trade agreement with the South American Mercosur bloc, comprising Argentina, Brazil, Paraguay and Uruguay, after more than twenty-five years of negotiations. A spokesperson for the European Commission said in Brussels that talks were “on the right track” and that the EU hoped to sign the agreement “fairly soon,” after the December 2025 vote was postponed because the required qualified majority among member states had not yet been achieved. According to EU officials, the key now lies with Italy, which has recently signaled its willingness to approve the deal following concessions on agricultural subsidies.

The agreement would create the world’s largest free-trade zone, covering more than 720 million people, and aims to reduce tariffs and strengthen EU export opportunities in South America. However, resistance from several member states—including France, Austria and Poland—remains strong. Critics warn of potential disadvantages for European farmers and demand clearer safeguards regarding agricultural imports, environmental protections and competitive distortions. Farmers’ protests across several EU countries continue to put political pressure on national governments.

To ease concerns, the European Commission has proposed providing significantly increased agricultural funds—totaling 45 billion euro—from 2028 onwards under the Common Agricultural Policy. These earlier-than-planned disbursements are intended to support farmers during the transition period and to secure the majority needed for approval. Observers view this offer as a last attempt to overcome opposition before the final vote on the agreement’s signing.

SK