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Crypto News

Europe seals massive South American trade agreement after quarter century of Talks – Cryptopolitan

Last updated: January 10, 2026 3:10 am
Published: 4 months ago
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But France, the EU’s biggest agricultural producer, voted against the deal. The country says the agreement will increase imports of cheaper food products like beef, poultry, and sugar, hurting domestic farmers. Austria, Hungary, Ireland, and Poland also voted no, while Belgium did not take a position. An EU diplomat and Poland’s agriculture minister said 21 countries supported the agreement.

Farmers have taken to the streets across the EU in protest. On Friday, they blocked highways in France and Belgium and marched in Poland.

EU member states have until 5 p.m. Brussels time (1600 GMT) to submit written confirmation of their votes. This would allow Commission President Ursula von der Leyen to sign the agreement with Mercosur partners in Asuncion, possibly next week.

The EU and Mercosur hope to expand goods trade worth 111 billion euros in 2024. EU exports mainly consist of machinery, chemicals, and transport equipment, while Mercosur focuses on agricultural products, minerals, pulp, and paper.

To win over skeptics, the European Commission put in place safeguards that can stop imports of sensitive farm products. It has strengthened import controls, particularly for pesticide residues, created a crisis fund, sped up support for farmers, and promised to reduce import duties on fertilizers.

The concessions were not enough to convince Poland or France, but Italy changed its position from a no in December to a yes on Friday.

“It seems to me the balance that has been found is sustainable,” Italian Prime Minister Giorgia Meloni told a press conference.

Mathilde Panot, lower house chief of the far-left France Unbowed party, said on X that France had been “humiliated” by Brussels and on the world stage.

French far-right and far-left parties plan to launch no-confidence motions in the government over the expected approval.

French Agriculture Minister Annie Genevard said the battle is not over and promised to fight for rejection by the EU assembly, where the vote could be close.

European environmental groups also oppose the accord, saying commodities shipped to Europe will often come from deforested land.

“The simple truth is that this unpopular deal is a disaster for the Amazon rainforest and no progressive MEP that is committed to forest protection should ever support it,” Greenpeace EU campaigner Lis Cunha said.

German Social Democrat Bernd Lange, the chair of parliament’s trade committee, said he believes the deal will pass, with a final vote most likely in April or May.

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