Mercosur hurdle: French objections and farm protests freeze EU trade deal; Brussels faces credibility test

France’s last-minute opposition and mounting farmer protests are threatening to derail the European Union’s long-delayed free-trade agreement with South America’s Mercosur bloc, raising fresh doubts over whether the pact can be signed this year, AP reported.Angry European farmers, fearing cheaper agricultural imports and tougher competition, have taken to the streets in Brussels just as EU negotiators were hoping to close a deal that has taken nearly 25 years to negotiate. The agreement involves the 27-country EU and five Mercosur nations — Brazil, Argentina, Uruguay, Paraguay and Bolivia — and would gradually remove duties on most goods traded between the two blocs over 15 years.The accord, agreed in principle a year ago, still needs approval from all EU member states and the European Parliament. EU officials had planned for European Commission President Ursula von der Leyen and European Council President António Costa to sign the deal in Brazil on December 20, but growing resistance now threatens that timeline.French Prime Minister Sébastien Lecornu said on Sunday that the current deal was “unacceptable” and that the “conditions have not been met” for EU leaders to authorise its signing this week, effectively seeking a delay that could push the decision to 2026 or later. While acknowledging steps taken by the European Commission to protect farmers and tighten food safety checks, Lecornu said France remained unconvinced.Poland, Austria, the Netherlands and France fear Mercosur exporters could undercut EU farmers who operate under stricter labour, environmental and sanitary rules, including pesticide restrictions, analysts told AP. France has been pressing for “mirror clauses” that would require Mercosur producers to meet the same standards — demands that have not been fully accepted.Alicia Gracia-Herrero, a senior fellow at the Brussels-based Bruegel Institute, said the standoff exposed limits to the EU’s political unity and global influence. “If we cannot get this done even with (US President Donald) Trump’s pressure, what can you expect from the EU?” she said, warning that further delays could undermine Brussels’ credibility in talks with partners such as Indonesia and India.The deal comes at a sensitive time for the EU, which has been seeking to diversify trade ties after Trump imposed tariffs of 15% on most EU imports earlier this year, AP reported. Brussels sees the Mercosur pact as a strategic counterweight to aggressive trade tactics by both the US and China.European Commission spokesperson Olof Gill said the bloc is pushing to conclude the agreement by year-end, arguing it would strengthen the EU’s geopolitical standing. “We’re talking about bringing together two of the world’s biggest trading blocs,” he said, citing cooperation on climate, economic security and reform of the global rules-based order.Agriculture remains central to the dispute. The EU exported 235.4 billion euros ($272 billion) worth of agricultural goods in 2024, and critics warn the deal could hurt local dairy and beef producers and cause environmental damage. Supporters counter that it would save businesses about $4.26 billion in duties annually and open markets for products ranging from French wine to German pharmaceuticals and Brazilian minerals.To calm opposition, the European Commission has proposed safeguards, including mechanisms allowing farmers to trigger investigations if Mercosur imports are priced at least 10% below EU products, tighter border inspections for banned pesticides, and reforms to distribute agricultural subsidies more equitably.These measures, however, have failed to ease French concerns or quell farmer anger. Agricultural unions are again planning demonstrations in Brussels as EU leaders meet later this week, underlining the political risks surrounding a deal that was once seen as a cornerstone of the bloc’s trade strategy.