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EU-Mercosur Deal Approved: Development for Whom and at What Cost?

Published January 14, 2026, 13:25
EU-Mercosur Deal Approved: Development for Whom and at What Cost?

The European Union has approved the free trade agreement with Mercosur (Brazil, Argentina, Paraguay, and Uruguay) after 25 years of negotiations, delays, and political controversies, despite the opposition of several member states. The agreement, which creates one of the largest free trade zones globally, aims to boost European exports and provide new opportunities, particularly for small and medium-sized enterprises (SMEs). However, there are serious concerns about the impact on the agricultural sector, as well as the potential influx of cheaper products that do not meet European quality and safety standards. The EU hopes the agreement will improve the transparency of regulations and simplify customs procedures in Mercosur, thereby facilitating exports from European SMEs. Currently, over 30,000 European SMEs already export to Mercosur countries, and the EU aims to significantly increase this number. Despite the safeguards added to protect the European agricultural sector, many fear these will not be sufficient to prevent the influx of cheaper agricultural products from Mercosur. The risk is similar to that observed in Greece and other countries, where small local businesses were marginalized by the dominance of large supermarket chains. The agreement raises questions about the sustainability of European agricultural models, which are characterized by strict rules for animal welfare, the environment, and hygiene. The ability of European producers to compete with products from countries with lower specifications and lower labor costs is a significant challenge. The discussion centers on whether the growth resulting from the agreement will benefit everyone or only large corporations.