Divergences over Mercosur agreement
The European Union has concluded a trade agreement with Latin American countries, contested by European politicians and businessmen.
Mihai Pelin, 12.01.2026, 13:50
Brussels has confirmed that European Commission President Ursula von der Leyen will sign the free trade agreement with the Mercosur states, approved by the EU last week, on Saturday in Asunción, the capital of Paraguay. The agreement was approved despite the negative votes of France, Poland, Austria, Ireland and Hungary and the abstention of Belgium. In order to reach a qualified majority, it was necessary to negotiate additional safeguard clauses for the European farmers, who continued to protest in recent days. An analysis by the EFE news agency shows that this treaty responds to Brussels’ need to find alternative markets and trading partners, in the context of escalating trade tensions with the United States, but also of the need to counter China in Latin America and Europe’s dependence on Beijing for critical materials.
To take effect, the Mercosur agreement must be ratified by the European Parliament, where opposition is expected from several MEPs both from countries that do not want the agreement, and from groups such as the far right, the greens or the left, due to concerns about the environment and unfair competition. Romania voted for this agreement, after negotiating, together with other European states, additional elements to protect Romanian and European producers.
This decision, however, drew harsh criticism from the Social Democratic Party (PSD) towards one of the partners in the ruling coalition in Bucharest – the Save Romania Union (USR). More specifically, the PSD condemned the decision of the Romanian diplomacy, a portfolio held by the USR, to mandate the representative in Coreper (Committee of the Permanent Representatives of the Governments of the Member States to the European Union) to vote in favor of the trade agreement, in the absence of clear clauses that had to guarantee that Romanian farmers would be protected from imports from Latin America. In response, USR showed that, on the contrary, the Romanian state supported the initiative only after tough negotiations that brought clear guarantees for industry and agriculture.
The agreement is not seen in a positive light by European farmers either, who protested in several countries in recent days, fearing unfair competition. The supporters of the agreement, which will allow the community bloc to export to the markets of Argentina, Brazil, Paraguay and Uruguay with substantially reduced customs duties and to import products from these states, consider it essential for stimulating exports, supporting the continent’s economy and strengthening diplomatic ties in a context of global uncertainty. Mercosur, a South American trading bloc, was established in 1991. Together, the Mercosur countries form the 6th largest economy in the world, with a total population of 270 million inhabitants. The main goods exported by the EU to Mercosur are machinery and appliances, chemical and pharmaceutical products and transport equipment, while the Union imports agricultural and mineral products, cellulose or paper. (LS)
