Romania in the EU-Mercosur equation
The trade agreement between the EU and the Mercosur countries - Brazil, Argentina, Uruguay and Paraguay - reflects Brussels' strategic direction to expand its economic influence and secure new markets in an increasingly competitive global economy
Corina Cristea, 15.05.2026, 14:00
After more than 25 years of negotiations, it recently entered into force on May 1st, provisionally pending final ratification by the European Parliament. It provides for the gradual elimination of customs duties on more than 90% of products traded between the two blocs and opens up new markets for European exports, which EU officials say could grow significantly.
The agreement has also sparked controversy and brought European farmers to the streets. Here is Professor Sergiu Mişcoiu, PhD, from the Faculty of European Studies and director of the Center for International Cooperation at Babeş-Bolyai University in Cluj-Napoca with more
Sergiu Miscoiu: “We are actually talking about an agreement that will eventually be a major free trade agreement, allowing for diversification both in terms of the European Union’s exports and its imports, especially to the extent that the European Union has been and continues to be dependent, even mono-dependent, on certain imports of raw materials from states that are increasingly less friendly, to put it another way, with the European Union, and here we are mainly talking about Russia, but also China. So in these conditions, this agreement can also represent, first of all, an opportunity for Romania, because things are extremely integrated. We must not only look at the direct effects, that is, how many Romanian companies will export to Paraguay, because then we will certainly not be very impressed by the figures that will come. But we must look, for example, at the entire production lines, at the fact that, for example, German, Italian, even French companies, although France is not a big fan of this agreement, benefit from spare parts, labor, various subcomponents that are produced in Romania and exported by Romania to these countries. In turn, these countries find parts in Latin America, so, basically, it is an agreement that allows the united European Union, the European Union that works much better together than it did before, to benefit; and the collateral effects, let’s call them that, are effects that are related anyway, I would say, to the diversification of markets and to macro changes at the global level. This European protectionism, which has functioned as it has for the last 30 years, has clearly reached a limit, and this is especially evident in this rather widowed field, that of agriculture.”
For Romania, the effects of the agreement are mixed – there are both economic opportunities and risks for certain sectors. The advantages include potential for increased industrial exports, opportunities for the port of Constanta or cheaper raw materials for certain industries. On the other hand, the main risk for Romania comes from the pressure on agriculture, as Romanian farmers are already facing high costs, price volatility, competition within the EU and financing difficulties. If fully ratified, the agreement would create a market of over 700 million consumers. Will the advantages of this agreement be felt equally in all European countries? Here is again, Professor Sergiu Mişcoiu.
Sergiu Miscoiu: “The competitive advantages obtained in new markets will never be felt equally or even in a very balanced way for all European Union countries, but various fields and subfields will manage to benefit more than others, and it’s all about knowing where to try to place ourselves in this new arrangement. For example, if we look at the automotive industry, Germany has substantially supported this project, to the extent that European markets are saturated, the competition coming from China in particular is very important, and Latin America is a huge market with restrictions so far on imports from Germany and in general, obviously, from the European Union, and the new agreement could allow for a great opening in this regard. In this German automotive market we have a major contribution, because we have both components and subcomponents, as well as a significant number of workers in this industry, in Romania and even in Germany. So there are these effects that, in the end, can create a plus for the countries that participate freely, voluntarily and, I would say, intelligently to these agreements.”
If for European companies the agreement brings easier access for automobiles, industrial equipment, pharmaceuticals, technologies and services, for Mercosur countries it means a larger market for agricultural products, beef and poultry, soy, minerals and critical raw materials.
Critics of the agreement point to Mercosur’s pesticide standards and the fact that South American producers have much lower costs. And cheap imports, they say, could hurt European agriculture. There are also fears that imported products will not comply with the same strict rules applied to European farmers, which could create unequal competition. Last but not least, several environmental organizations warn that the agreement could accelerate deforestation in the Amazon for the expansion of agriculture and cattle breeding.
(bill)
