The recently signed trade agreement between the European Union and the Mercosur countries (Argentina, Brazil, Paraguay, and Uruguay) marks a significant step in international trade relations. However, despite the signing, political challenges remain before the deal is fully implemented.
Environmental and Agricultural Changes in the Deal
One of the key changes in the new agreement is the introduction of binding environmental standards. These include a clause that allows the deal to be suspended if either party fails to meet the agreed standards. A major achievement is the commitment by Mercosur countries to stop illegal deforestation by 2030, which is the first time such a provision has been included in a trade agreement. Starting in 2025, only deforestation-free products, such as soy, beef, palm oil, and cocoa, will be allowed to enter the EU market.
In the agricultural sector, the deal largely mirrors previous agreements, but a €1 billion fund has been established to protect European farmers from potential negative impacts. This fund acts as a safety net to address concerns about unfair competition from Mercosur countries.
Political Resistance and the Road Ahead
Despite the progress made, the agreement still faces several political challenges. The deal must be ratified by the European Council, where countries like France and Poland have expressed strong opposition. The support of other nations, such as Ireland and the Netherlands, is also uncertain, which could complicate the approval process.
Once the Council approves the deal, it will be presented to the European Parliament for final approval. Italy’s position will be crucial, as the country has traditionally been protective of its agricultural sector. The support of Italy could be key in securing the deal’s passage, despite concerns from other member states.