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EU at a Crossroads Over Mercosur Trade Deal

Published January 9, 2026, 07:28
EU at a Crossroads Over Mercosur Trade Deal

The European Union is at a critical juncture regarding the approval of the free trade agreement with Mercosur (Brazil, Argentina, Paraguay, Uruguay), after more than 25 years of negotiations. The European Commission, under Ursula von der Leyen, has reached a preliminary agreement and plans to sign it on January 12th. However, the deal faces strong opposition from member states such as France, Italy, Poland, and Romania, who fear negative consequences for their agricultural and livestock sectors. Protests from farmers and ranchers in various EU countries have intensified, while the negotiation process itself has been described by many as evidence of the EU's geopolitical weakness. Although there were two previous attempts to sign the agreement, disagreements between the EU Council (member states) and the European Parliament prevented its final ratification. Germany, Spain, Portugal, and the Scandinavian countries support the agreement, believing it will strengthen trade and economic relations between the two regions. The European Commission is trying to appease the concerns of opposing member states by proposing an increase in resources for farmers in the EU budget. The final decision will be made today, January 9th, by the permanent representatives of the 27 EU member states in Brussels. The outcome of the meeting remains uncertain, as the agreement appears to be at an impasse, with the possibility of being definitively rejected despite the President of the Commission's desire to sign it.