Last week, a new president was elected in Argentina who opposes the current agreement. Argentina has informed Brazil, the current rotating chair of Mercosur, that it will not be able to make new commitments and intends to leave decisions to their new president Javier Milei. The December 7 summit takes place days before Milei’s inauguration.
French President Emmanuel Macron also raised new objections shortly thereafter. According to Macron, the environmental commitments that Brussels has obtained are insufficient.
Macron said that he “cannot ask our farmers, our industrialists in France and throughout Europe to strive to reduce CO2 emissions while we abolish tariffs on imported goods that are not subject to these rules.” He made this statement this weekend to Brazilian President Luiz Inácio Lula da Silva at the COP-28 conference in Dubai.
The trade deal between the EU and the four Mercosur countries has been under discussion for about two decades. The pact would create an integrated market of 780 million consumers, making it the largest free trade agreement in the history of the EU. However, especially in agricultural circles in the EU countries, there is fear of market disruption because South American imported products are not subject to various environmental laws in force in Europe.
In several European countries, including the Netherlands, there has long been significant opposition to the potential agreement. Earlier this year, a parliamentary majority in the Netherlands argued that it must be made “clear and unequivocal” in Brussels that agriculture should not be part of the trade agreement. They also believe that the safety of imported meat is at risk and that it leads to additional deforestation of the Amazon.