Agreement faces challenges in its ratification by the 27 countries of the European Union, especially due to resistance from France, Poland and Italy
After 25 years of negotiations, the EA concluded a long-awaited free trade agreement, announced during the Mercosur Summit in Montevideo. The treaty aims to encourage commercial exchange between the blocs, promoting greater competitiveness for South American agricultural products in the European market and facilitating access to European industrialized products, such as automobiles and technologies, in South America. Although celebrated as a historic milestone, the agreement faces challenges for its ratification by the 27 countries of the European Union, especially due to resistance from , and .
These countries fear that Mercosur agricultural products, such as beef and soy, will be favored by differences in environmental regulations and quality standards, harming European farmers. On the European side, there has also been a focus on more stringent environmental commitments, including the introduction of environmental protection clauses and the promotion of decent work. However, European farmers question the application of these standards in Mercosur.
In Brazil, the renegotiated crucial points of the agreement initially signed in 2019. The president classified the conditions of the previous text as “unacceptable” and highlighted that the changes preserve the country’s strategic interests. Among the main changes is the exclusion of purchases made by the Unified Health System (SUS) from the contracting rules of the treaty, guaranteeing autonomy for public policies in areas such as health, family farming and technology. Furthermore, the schedule for eliminating tariffs in the automotive sector was extended, covering longer periods for , hydrogen and new technologies. Safeguards were included to protect national industry in the event of a significant increase in European imports.
Despite the optimism, implementation of the agreement faces a long road ahead. The war in Ukraine, transformations in global production chains and the European Union’s recent Anti-Deforestation Law could impact negotiations. At the domestic level, critics point out that the changes could move Brazil away from international standards, making it difficult for it to join the OECD.
For defenders, the agreement is a strategic opportunity to reposition Mercosur on the global stage and stimulate industrial and technological sectors. The ratification and execution of the treaty, however, will depend on overcoming political resistance and adjustments to the demands of both blocs, keeping the promised benefits in balance.
*With information from Luca Bassani
*Report produced with the help of AI
