The European Commission has prepared a series of political “safeguards” to appease France’s powerful farming lobby in a bid to secure final approval for its long-delayed trade agreement with the Mercosur bloc, the Financial Times has reported.
The EU hopes to finalize the landmark deal — two decades in the making — by December. The agreement would create a market of 700 million consumers by linking the European Union with four South American nations: Brazil, Argentina, Uruguay, and Paraguay. But its path to ratification has been repeatedly blocked by France, which has threatened to rally a blocking coalition of member states unless new protections are introduced for European farmers.
According to four officials familiar with the negotiations, the Commission is set to present a formal proposal to EU capitals that includes a “political protocol” — a set of safeguard measures designed to address agricultural concerns. These “circuit breakers” would allow the EU to limit imports of sensitive goods such as beef, chicken, and sugar if volumes or prices breach certain thresholds.
The move is a direct response to demands from Paris, where the agricultural sector remains a potent political force. France has voiced strong opposition to the Mercosur deal without added guarantees for farmers, citing fears of unfair competition and potential environmental damage. It has also been supported by countries like Poland and Austria, which share similar concerns over the impact on domestic agriculture.
“There are many member states which are not happy with the agricultural part of the Mercosur agreement. That’s why they need a safeguard clause that is credible,” one EU official told the Financial Times.
Under EU rules, trade agreements can be blocked by at least four member states representing 35% of the EU population — a threshold that gives France, the bloc’s second-largest country, significant leverage in the talks.
While Brussels is hopeful the new protocol will secure France’s support and pave the way for a formal agreement at a December summit — coinciding with the end of Brazil’s rotating presidency of Mercosur — the proposed safeguards could reignite tensions with the South American bloc.
Two Mercosur officials told the FT that they were aware of ongoing EU discussions over agricultural amendments but had not yet seen a concrete proposal. A senior South American diplomat warned that any additional constraints on farm exports would be viewed as a “reopening” of negotiations. “They can label it however they want, but if it affects trade flows, we would consider it a reopening of the talks,” the diplomat said.
Brazilian President Luiz Inácio Lula da Silva, a vocal proponent of the trade pact, recently attempted to sway French President Emmanuel Macron during a visit to Paris. Lula has consistently emphasized the deal’s importance for South American economies and their global integration.
Despite the diplomatic push, resistance from European farmers remains strong. Critics argue the deal could undercut EU producers with lower-cost imports and weaken the bloc’s environmental standards. France has maintained that the agreement, in its current form, lacks sufficient protections against both economic and ecological risks.
The European Commission, which manages trade policy on behalf of member states, declined to comment on the proposal.
As the clock ticks toward the December deadline, Brussels must navigate a complex political balancing act — offering enough concessions to keep France and its allies on board without undermining the core of the Mercosur agreement and provoking backlash from South American partners.
