European Union envoys have given provisional approval to sign the bloc's largest-ever free trade agreement with South America's Mercosur nations, ending more than two decades of negotiations and political deadlock. The decision marks a major strategic bet by Brussels as it seeks to counter rising United States tariffs and reduce dependence on China.
Backed by a coalition of at least 15 member states representing the required share of the EU population, the agreement would link the EU with Argentina, Brazil, Paraguay and Uruguay in a trade zone spanning more than 700 million people. European officials argue the pact will open doors for manufacturers and exporters, particularly in machinery, chemicals and transport equipment, while securing access to critical raw materials.
The deal has sparked fierce opposition, led by France, where farmers warn that cheaper imports of beef, poultry and sugar could undercut domestic producers. Protests have flared across the continent this week, with tractors blocking roads in France and demonstrations spreading to Belgium and Poland. To blunt the backlash, the European Commission has promised safeguards, including emergency import brakes, tighter food safety controls and a crisis fund for farmers.
Those concessions failed to win over Paris or Warsaw, though Italy swung its support at the last minute, tipping the balance in favour of approval. French officials insist the fight is far from over, pledging to try to sink the agreement when it reaches the European Parliament, where the vote is expected to be close.
If approved by lawmakers later this spring, the pact would slash around €4bn in tariffs and reshape EU-Latin America trade flows. Supporters see it as a geopolitical necessity in an era of trade wars and fractured alliances; critics warn it risks sacrificing farmers and climate goals in exchange for export gains.