Merz views the agreement as nearly finalized and emphasizes that it would be an important step for economic relations between the EU and South America. He wants to accelerate the process, partly due to the threat of trade sanctions from the United States. Macron remains concerned about the impact on French farmers, especially regarding the cheap import of South American beef.
France is trying to convince other EU countries to block the agreement. Together with Poland, it forms a group warning about negative effects on agriculture and the environment. France is attempting to buy time within the EU framework to mobilize more allies against the deal.
Meanwhile, some EU countries are changing their stance. Under pressure from looming American sanctions and the stalled talks with Washington on import tariffs, several member states are increasingly willing to approve the Mercosur agreement. The European Commission is trying to force a decision by July 9 at the latest.
Talks with the United States on mutual trade duties will resume on July 16. Since little progress is expected there, Brussels is already exploring other alternatives, including a possible trade agreement with Asian countries, bypassing the US. This aims to make the EU less dependent on American pressure.
The Mercosur countries—Brazil, Argentina, Uruguay, and Paraguay—are urging for an agreement. According to their leaders, the deal is crucial for economic growth. Brazilian President Lula has asked Macron to drop his opposition. He argues that the agreement also helps improve social and environmental standards in his region.
In Germany, agricultural organizations emphasize that European farmers must not become victims of international agreements. Merz has promised that accompanying measures will be taken to compensate vulnerable sectors. However, details about the precise implementation or funding of these measures are not yet known.