The European Union and the countries of the MERCOSUR bloc have officially completed the signing of a large-scale trade agreement, negotiations on which lasted more than 20 years. The document covers the EU and South American countries—Brazil, Argentina, Uruguay, and Paraguay—and provides for the creation of one of the world’s largest free trade areas, ProAgro Group reports.
Under the agreement, the EU will gradually eliminate or significantly reduce tariffs on imports of agricultural products from MERCOSUR, including beef, poultry meat, sugar, corn, and soybeans within established quotas. In return, European companies will gain improved access to South American markets for exports of industrial goods, automobiles, machinery, pharmaceuticals, and chemicals, as well as broader opportunities in services and public procurement.
The history of the negotiations dates back to the early 2000s. Political agreements were reached as early as 2019, but the ratification process was repeatedly stalled due to EU environmental requirements, concerns over deforestation in the Amazon, and fears of increased competition for the European agricultural sector. In 2024–2025, the parties agreed on additional protocols on sustainable development and climate commitments, which ultimately paved the way for signing the agreement.
At the same time, the decision has triggered a strong reaction from farmers in several EU countries. Agricultural unions in France, Belgium, Poland, and Italy say that cheaper imports of meat and feed crops from South America could put pressure on prices and incomes for European producers, who operate under stricter environmental and social standards. Protests have already taken place in Brussels and national capitals, demanding a review of quotas and domestic market protection mechanisms.
The European Commission emphasizes that the agreement includes transition periods, tariff limits, and safeguard instruments, while also opening new opportunities for exports of European high value-added products. However, for the EU agricultural sector, it may become one of the most serious challenges in the coming years.
For Ukraine, the signing of the agreement means increased competition in the EU market from South American giants and may complicate sales of Ukrainian corn, meal, and poultry meat. On the other hand, deeper integration into the European market will accelerate adaptation to EU standards in order to maintain competitiveness.
The document now awaits ratification by the European Parliament, a process that promises to be no less contentious than the negotiations themselves.
Read also: French farmers block Paris with tractors over the EU–MERCOSUR agreement.
