The European Union and the Mercosur nations—Argentina, Brazil, Paraguay, and Uruguay—have finalized an updated trade agreement that aims to address long-standing issues surrounding agriculture, the environment, and tariffs. However, despite the progress, significant hurdles remain before the deal is fully ratified.

Environmental and Agricultural Safeguards in the Revised Deal

The updated agreement introduces crucial provisions in response to past criticisms, particularly regarding environmental concerns. Notably, Mercosur countries have committed to ending illegal deforestation by 2030. This new, legally binding commitment marks a first in a trade deal and ensures that from 2025 onwards, only deforestation-free products, such as soy, beef, and cocoa, will be allowed into the European market.

Additionally, the European Commission has allocated €1 billion as a safety net for European farmers who may face negative impacts due to the deal. Agricultural products like beef and poultry will still be subject to new quotas, though tariff reductions will be phased in gradually, minimizing immediate disruptions.

Political Struggles Ahead for Deal Approval

Despite the agreement’s potential benefits, significant political opposition remains within the EU. France, the primary opponent, is working to form a blocking minority against the deal. Other EU countries, including Poland, Ireland, and the Netherlands, have yet to take a definitive stance, further complicating the approval process. Italy, while generally supportive, will need guarantees for its agricultural sector to back the deal fully.

Once the agreement passes through the European Council, it will require ratification by the European Parliament, where the outcome is still uncertain. With political debates intensifying, the final approval of this trade agreement is far from assured.