Philenews

EU-Mercosur Deal: What It Is and What Changes for Europe's Future

Published January 10, 2026, 14:08
EU-Mercosur Deal: What It Is and What Changes for Europe's Future

The approval of the EU-Mercosur free trade agreement, after 25 years of negotiations, has sparked strong reactions in Cyprus, mainly from agricultural organizations. Farmers express fears that the agreement will disrupt European agriculture by allowing the import of cheaper products that do not comply with EU environmental standards due to inadequate controls. The agreement provides for the elimination of tariffs and the opening of markets between the EU and Mercosur (Argentina, Brazil, Paraguay, Uruguay). Mercosur commits to eliminating tariffs on 91% of EU exports, including cars, while the EU will gradually eliminate tariffs on 92% of Mercosur exports. The agreement also includes specific quotas for agricultural products, such as wine, cheese, beef, poultry, rice, and sugar. Beef quotas amount to 99,000 metric tons, representing 1.6% of EU consumption. Supporters of the agreement expect to strengthen European exports in certain sectors, such as cars and wine. However, critics are concerned about the unfair competition that will arise for European farmers, as well as the potential import of products with residues of prohibited substances. Furthermore, they emphasize that the agreement does not take into account the specificities and difficulties faced by Cypriot farmers, such as drought and land problems. The Mercosur agreement is a significant step in strengthening trade relations between the EU and South America, but it raises serious questions about the protection of European producers, food safety, and environmental sustainability.