Key insights into the final EU-Mercosur agreement
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Veblen | 12 December 2024
Key insights into the final EU-Mercosur agreement
by Mathilde Dupré & Stéphanie Kpenou
Negotiations between the EU and Mercosur countries, initiated in 1999, resulted in a 2019 agreement in principle on the trade component. However, new negotiations took place in 2023 and 2024 regarding an additional instrument. To address internal opposition, the EU demanded additional commitments concerning adherence to the Paris Agreement and combating deforestation. Meanwhile, Brazil sought to better protect its industry (1). Ultimately, changes were made to the text’s content, though not to the agricultural chapter or the production’s sanitary and environmental standards.
A preliminary analysis of these new texts indicates that the clauses added at the EU’s request are in no way sufficient to effectively prevent the anticipated health and environmental impacts arising from the implementation of the trade agreement (I). Furthermore, some of the new provisions—such as the rebalancing mechanism for trade concessions—could prove highly detrimental, making it exceedingly difficult to adopt and effectively implement mirror measures within the EU or in Mercosur countries in the future (II).
Finally, this note examines the democratic deficit in the negotiation process and the upcoming political steps. The content of these final negotiations was kept secret until their conclusion, even from parliamentarians and member state governments. The European Commission’s communication on the negotiation outcomes appears overly “favorable,” even misleading on certain points (III).
In any case, the three red lines drawn by France in 2020 regarding the agreement remain relevant, and their violation should continue to justify a definitive rejection of the EU-Mercosur agreement.
