The deal between Brussels and Argentina, Brazil, Paraguay, and Uruguay was recently called a 'win-win' agreement by European Commission President Ursula von der Leyen, although it faces strong resistance from agricultural organizations and several EU countries.
Germany, Spain, Portugal, and other countries have welcomed the agreement, but France, supported by Italy and Poland, said from the start that this agreement 'in its current form' was unacceptable.
Although the negotiations have concluded, the agreement still needs to be approved by at least 15 of the 27 EU countries representing at least 65% of the EU population. This would create an extensive free trade zone with more than 700 million people.
Brussels has, at the last moment, set up a 'damage fund' of 1 billion euros for farmers who can prove they suffer damage due to the easing of trade conditions. This concession is clearly insufficient for President Macron.
At a recent discussion in the European Parliament, there appears to be a majority in favor of the treaty. It is expected to take at least another year before the ratification process begins within the EU countries and the EU parliament.
European farmers complain that South American farmers face fewer strict environmental and climate laws, such as those in place for European farmers in the EU. This would disrupt their competitive position.
European environmental organizations especially point to the role South American agriculture and the food industry play in the destruction of large parts of the Amazon rainforest, an important buffer against climate change.