EU member states on Friday gave the green light to the signing of the Mercosur agreement, paving the way for a vast trade bloc taking in more than 700 million people across Europe and Latin America. France, however, plans to continue its fight against the deal in the European Parliament.
A qualified majority of member states backed the Mercosur agreement on Friday, ending more than two decades of difficult negotiations between the European Commission and a group of Latin American countries – Argentina, Brazil, Paraguay and Uruguay – as well as internal divisions among the EU.
France, Poland, Austria, Hungary, Ireland voted against, while Belgium abstained, according to diplomats familiar with the matter who spoke to Euronews.
The decision is a blow to French efforts to rally a blocking minority that could stop the Mercosur, a polarising trade agreement for the French public opinion.
Italy, which had asked for extra time to assess the deal, ultimately voted in favour.
The backing came after member states adopted a safeguard allowing tighter monitoring of the EU market to prevent serious disruptions from Mercosur imports.
The agreement, clinched by Commission President Ursula von der Leyen in December 2024, would create a free-trade area of more than 700 million consumers.
European companies would gain access to a market of 280 million consumers in Latin America, where some 30,000 EU firms already operate.
Mercosur backers, led by Germany and Spain, have long argued the agreement will open access to new markets and will cement the EU’s position in Latin America as a key player. Opponents, led by France, warn Mercosur risks exposing EU farmers to unfair competition from Latin American agricultural imports.
A signature ceremony between the EU and the Mercosur countries is expected to take place January 17 in Asunción, Paraguay.
Farmers fight back as European Parliament readies vote
Opposition to the deal from EU farmers has been fierce. While duties will gradually be eliminated for most products once the agreement enters into force, quotas would remain in place to protect competition-sensitive agricultural products such as beef, poultry and sugar.
In recent months, the Commission has added concessions aimed at mollifying farmers and securing the crucial support of Italy, including early access to €45 billion in Common Agricultural Policy funds from 2028 and a freeze of the EU’s carbon border tax on fertilisers.
To address environmental concerns, negotiators also made compliance with the 2016 Paris climate agreement an “essential element” of the deal, allowing for partial or full suspension if commitments are breached.
Friday’s vote opens the way for the EU to sign the agreement, with von der Leyen expected to travel to Latin America soon.
"Today Europe has sent a strong signal that we are serious about our priorities," the Commission President said in a statement, adding: "On our commitment to diversify our trade and reduce our dependencies. And in the face of an increasingly hostile and transactional world."
The EU conclusion procedure, however, also requires the consent of the European Parliament.
Late on Thursday, the French delegation of Renew said the Cyprus EU presidency had used a legal procedure to enable the provisional implementation of the agreement without a parliamentary vote.
French opponents are now pinning their hopes on blocking the deal in Parliament.
This article was updated to include a reaction from Commission President Ursula von der Leyen. Details of the deal.