French farmers protest the European Union-Mercosur free trade agreement, in front of the Arc de Triomphe, in Paris, on January 8, 2026. SARAH MEYSSONNIER / REUTERS
Of all the trade agreements the European Union has negotiated, the one with four countries from the Mercosur trade bloc (Brazil, Argentina, Uruguay and Paraguay) has been the most politically sensitive. After 26 years of negotiations, on Friday, January 9, the European Commission gave the green light for the deal to be signed, with the support of a majority of member states. This is set to take place on January 17. Although the deal has been highly controversial in France, it is not the most significant in terms of trade volume.
The South American bloc only ranks 10th among the EU’s trading partners, and the EU exported €53.3 billion worth of goods to the four Mercosur countries in 2024, about half as much as it exported to Turkey. Conversely, the EU is a relatively much more important trading partner for Mercosur, ranking second after China, with Mercosur’s exports to the EU totaling €57 billion.
Yet the South American countries’ export power in the agriculture sector, a highly sensitive industry in Europe, has fueled controversy. This was especially true in France, the EU’s leading agricultural power, where there was unanimous opposition against the trade deal. On Thursday, January 8, Emmanuel Macron announced that France would vote “against” the deal, citing the “unanimous political rejection of the agreement.” Indeed, the Assemblée Nationale had adopted a cross-party resolution on Thursday, November 27, which called on the government to oppose the deal. The agreement could also be rejected by the European Parliament in early 2026. Finally, 150 MEPs (out of 720) have announced that they could also take legal action to block the deal.
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