According to the European Commission, the revised text contains additional safeguards against sudden market disruptions. European farmers and food producers could expect financial support and safeguard clauses if prices or yields collapse due to cheaper imports from South America. This is Brussels’ way of addressing concerns about competition and food safety.
France plays a notable role in the final phase of the negotiations. President Emmanuel Macron said in Brazil that he was "rather positive" about the agreement, which he believes has now been improved enough to be signed.
Not everyone in Paris shares that optimism. Agriculture Minister Annie Genevard stated that the current guarantees are still "inadequate" and that France has set clear boundaries. The largest farmers’ union FNSEA went further, calling the agreement a "betrayal" of French agriculture because, in their view, it opens the door to unfair competition.
A more cautious tone is taken in Italy. Rome no longer opposes the trade agreement but demands strong guarantees for farmers and reciprocal environmental standards. There is now a fund worth billions of euros to compensate European farmers in the event of significant price drops. Nevertheless, farmers’ organizations remain skeptical and fear competition from cheaper South American products.
In recent months, European politicians have pointed out that international trade relations have changed drastically. This is attributed not only to Russia’s war against Ukraine but also to the extremely high import tariffs globally imposed by former US President Trump.
Many European leaders believe EU countries need to diversify their food and trade interests across multiple suppliers and nations and become less dependent on economic competitors such as the United States or China. Therefore, Brussels is also working on additional trade agreements with Asian and African countries.
The European Commission points out that the new trade agreement with South America carries not only risks (for the agricultural sector) but also opportunities (for industry). European exporters of cars, wine, and machinery gain access to new markets, while imports of meat, sugar, and grain from South America will be subject to quotas and controls.