BRUSSELS, Jan. 10 (Xinhua) -- EU member states on Friday greenlighted the long-negotiated EU-Mercosur Partnership Agreement, authorizing a comprehensive partnership pact and a stand-alone Interim Trade Agreement aimed at accelerating trade benefits.
The Council said the package marked a milestone in relations with Mercosur partners Argentina, Brazil, Paraguay and Uruguay, establishing a framework for political dialogue, cooperation and trade under a modernized partnership.
A QUARTER-CENTURY NEGOTIATION
Negotiations on an EU-Mercosur pact have stretched about 25 years, repeatedly stalling and resuming amid shifting political coalitions, disputes over environmental safeguards in South America, and opposition from parts of Europe's farm sector.
A breakthrough came in December 2024, when EU and Mercosur leaders announced they had reached a political agreement on the trade pillar of the partnership, triggering the legal and technical work required ahead of signature and ratification.
The European Commission has cast the pact as the biggest trade agreement the EU has ever concluded, saying it would create a free-trade area of more than 700 million people and strip out over 4 billion euros (4.65 billion U.S. dollars) a year in tariffs on EU exports.
Friday's approval came after years of division among EU member states. Proponents such as Germany and Spain say the deal would help open new markets as Europe seeks to offset the impact of U.S. tariffs, while France-led opponents warn it could increase imports of cheaper beef, poultry and sugar, adding pressure on domestic farmers.
In recent months, the European Commission has sought to shore up support with additional "safeguards" to limit disruption from sensitive agricultural imports, while EU officials and diplomats have discussed additional farm-support funding in the bloc's next long-term budget cycle.
The Commission has floated measures aimed at winning over skeptical member states, including Italy, such as earlier access from 2028 to 45 billion euros in Common Agricultural Policy funding and a freeze on the EU's carbon border levy for fertilizers.
PROS AND CONS
On Friday, France, Poland, Austria, Ireland and Hungary voted against the package, while Belgium abstained. Italy backed the deal after securing additional assurances for its farm sector, a swing that diplomats said was crucial in achieving the qualified majority needed.
European Commission President Ursula von der Leyen hailed the agreement as a "win-win" and said it would "mark a new era of trade and cooperation with our Mercosur partners."
She said she was looking forward to the signing, which Argentina revealed was scheduled for Jan. 17 in Paraguay.
German Chancellor Friedrich Merz called the agreement "a milestone in European trade policy and a strong signal of our strategic sovereignty and ability to act." Spain echoed this message, saying the deal would help Spanish companies "enter new markets, export more, and create more jobs."
Farm groups and several governments, however, warn that expanding EU market access for Mercosur agricultural exports could expose European producers to unfair competition from lower-cost goods. Critics highlight imports such as beef, poultry and sugar, as well as environmental concerns like deforestation linked to agricultural expansion in parts of South America.
On Thursday, French farmers drove about 100 tractors into Paris and blocked roads at symbolic sites, including the Eiffel Tower and the Arc de Triomphe, to protest agricultural policy and the EU-Mercosur deal. In Belgium, farmers blocked major roads ahead of Friday's approval.
Similar demonstrations took place in Poland, where farmers staged nationwide protests, arguing the pact threatens European agriculture and food safety. Demonstrations were planned in 186 locations, with farmers and supporters marching through Krakow, the country's second-largest city.
Beyond national protests, the European Coordination Via Campesina, a Europe-wide network of peasant farmer unions, condemned the decision to clear the way for the agreement on Friday.
It said the pact, negotiated behind closed doors and on "outdated premises," prioritized agribusiness interests over the livelihoods of farmers and agricultural workers.
"By removing tariffs on over 90 percent of products, the deal will intensify unfair competition, exposing European farmers to imports produced under social, environmental, and sanitary standards that are not equivalent in practice and often impossible to effectively control," the organization said.
RIFTS IN PARLIAMENT
Under Friday's decision, the EU will sign the agreement and provisionally apply large parts of its political and cooperation chapters. The formal conclusion, however, still requires the consent of the European Parliament, setting the stage for a fresh political battle in Strasbourg.
The two largest political groups in the European Parliament, the European People's Party (EPP) and the Progressive Alliance of Socialists and Democrats, signalled support on Friday. The EPP said it would vote in favor when parliament is asked to give consent, arguing the pact would strengthen Europe's competitiveness and strategic autonomy.
The Left group, by contrast, denounced the deal as "the worst trade agreement ever" concluded by the EU.
"Social, environmental, and sanitary standards are not the same as those applied in Europe, which places our farmers in a situation of unfair competition," the group said, adding it would continue to oppose the agreement alongside civil society and farmers.
Jordan Bardella, president of the far-right Patriots for Europe group in the European Parliament and leader of France's National Rally, accused French President Emmanuel Macron of hypocrisy for claiming to oppose the deal while failing to stop it.
Bardella said his party would launch two motions of censure -- one against the French government in the National Assembly and another against the von der Leyen Commission in the European Parliament.
Independent Irish member of the European Parliament (MEP), Ciaran Mullooly, said the key question would be whether internal splits emerge within the main parliamentary groupings.
He added that he believed there were "200-odd" MEPs across the political spectrum who could vote against the pact, far short of the 361 needed for a simple majority. ■
