France’s strong resistance to the Mercosur agreement begins to crack in response to concerns about potential EU exports to the United States.
“The existing and future trade agreements between the EU and other economies (Jefta (the free trade agreement with Japan), Ceta (the free trade agreement with Canada), the Mercosur-US free trade agreement) could increase tariff shocks linked to American trade policy,” said the annual letter of the French President Emmanuel Macron, Macron.
In December, the European Commission concluded a political agreement with the Mercosur countries – Argentina, Brazil, Paraguay and Uruguay – to establish one of the largest free trade zones in the world, encompassing 750 million people and approximately a fifth of the world economy. The agreement now needs approval from EU countries before it comes into force.
France has long opposed the agreement. In particular, he denounced what he claimed to lead to unfair competition for his farmers, calling for the introduction of so-called “mirror clauses”, so that agricultural imports from Mercosur meet the same existing production standards for EU farmers.
The European deputy Marie-Pierre Vedrenne (France / Renew), an eminent critic of the Mercosur agreement during the previous legislative quarter and former president of the Commercial Committee, recently adopted a more measured tone.
“I have a personal conviction: staying opposed to this agreement on a principle alone does not seem reasonable to me,” she told Euronews.
Officially, France maintains that it is aware of the evolution of the context of global trade, but its position on the Mercosur agreement remains unchanged. Paris continues to reject the agreement.
“The French position has not changed, but the context has taken into account,” said a French diplomat in Euronews, “the context is now favorable to the Mercosur agreement, and the Latin American countries are also looking for opportunities while the American market firm. This position was resolved by another French official.
The imminent arrival of Friedrich Merz as Chancellor in Germany and renewed the EU’s impulse to diversify global trade partnerships in response to the increase in American protectionism, has intensified pressure on France and other Member States opposing the EU-Mercosur agreement.
“The Mercosur free trade agreement with the four countries of South America is due to quickly enter into force,” Merz told German media Handelsblatt on April 13.
Among the countries opposed to the agreement, Ireland, eager to protect its farmers, said on April 9 through its Minister of Commerce that he would maintain his opposition, and Austria remains opposed, while the Netherlands and Poland are criticism from the agreement.
Italy remains in favor of the agreement, although it wants the impact on agriculture to be taken into account in the final text.
On Monday, a spokesman for the Commission said that the EU executive did not provide for modifications to the text.
The document that the Member States will have to approve will be sent to them before the end of the summer, added the Commission.
Meanwhile, the uncertainty surrounding the price war of President Donald Trump leaves the possibility that EU criticisms of the Mercosur agreement can reconsider their position.
