Politis

Cyprus Faces Concerns Over EU-Mercosur Deal: Unfair Competition and Halloumi at Risk

Published January 12, 2026, 15:19
Cyprus Faces Concerns Over EU-Mercosur Deal: Unfair Competition and Halloumi at Risk

The EU Council's approval of the Mercosur trade agreement has sparked strong reactions in Cyprus, particularly within the agricultural sector. Farming organizations are expressing concerns about unfair competition, food safety, and environmental sustainability, as well as the future of halloumi cheese. Cyprus's vote in favor of the agreement has raised questions and demands for explanation. The Mercosur agreement includes Argentina, Brazil, Paraguay, Uruguay, and Bolivia. Cyprus, under its presidency, supports the trade deal as a “historic milestone” for an “Open Union to the World.” However, countries such as France, Poland, Austria, Hungary, and Ireland voted against it, while Belgium abstained. European Commission President Ursula von der Leyen is expected to travel to Paraguay for the official signing of the agreement. Despite the pending approval from the European Parliament, the European Commission is considering implementing the agreement before final approval. The Cypriot Parliamentary Committee on Agriculture will discuss the issues arising from the Mercosur agreement next Wednesday, with the presence of the relevant minister. Farmers fear that lower production standards and fewer controls in Mercosur countries will create unfair competition and increase production costs for European farmers.