President Trump has announced plans to introduce high import duties on European goods, including cars and agricultural products, within 90 days. He aims to ‘correct European imbalances in his trade balance.’ According to French media, this is part of broader tensions in transatlantic trade relations.
The European Union has prepared plans for countermeasures in response. The European Commission is exploring options for import tariffs on American products should Trump carry out his threat. At the same time, EU officials want to use the Mercosur agreement to diversify trade routes and reduce dependence on the United States.
French farming organizations remain strongly opposed to the EU-Mercosur agreement. They fear that South American products will flood the French market, leading to unfair competition due to different production standards. They point to risks of lower prices, income losses, and the undermining of environmental and animal welfare standards.
France is trying to form a so-called blocking minority within the European Union. This means it is attempting to convince enough other member states not to ratify the deal. Currently, it has support from countries including Austria and Ireland. French diplomats are reportedly actively consulting with like-minded countries.
The new French Minister of Agriculture, Annie Genevard, is attempting to mend the disrupted dialogue with French farming organizations such as the FNSEA and Jeunes Agriculteurs. To achieve this, she has visited regions to engage with agricultural representatives. She is also working with other ministers to regain the trust of farmers.
To address farmers’ concerns, the French government announced ten measures last week. These are intended to improve communication between farmers and the French Biodiversity Office (OFB). The measures include mediation, better communication, and greater clarity about regulations. The minister hopes this will reduce tensions in rural areas.
Although France’s formal opposition to the Mercosur agreement remains, pressure is mounting within the government to reconsider its stance. Several French economists point out that American sanctions could prove more harmful to the French economy in the short term than the trade agreement with South America.