On Wednesday, the European Commission approved a trade agreement with Mercosur, proposing a temporary agreement subject to endorsement by the European Parliament and EU member states. To address concerns regarding the agricultural sector, the Commission introduced a safety brake to manage potential oversupply and ensure compensation options.
The final text of the agreement, negotiated in December 2024 with Argentina, Brazil, Paraguay, and Uruguay, received approval from the college of commissioners on Wednesday.
According to EU sources cited by PAP, several commissioners, including Polish representative Piotr Serafin and French representative Stephane Sejourne, advocated for enhanced safety measures for farmers amid the EU’s market opening to agricultural goods from Mercosur nations. Consequently, the Commission pledged a political commitment to establish a safety brake to address any influx of sensitive agricultural products from these countries.
** EU companies and the agri-food sector will quickly reap benefits from reduced tariffs and lower costs, fostering economic growth and job creation – remarked Commission President Ursula von der Leyen.
This decision concludes a nine-month process focused on legal refinement and translation of the agreement into EU national languages.
The college also outlined the ratification process for the agreement. Before full ratification by all member state parliaments, the Commission is proposing a temporary agreement that encompasses the trade components. This will require approval from the European Parliament and member states within the EU Council, which will decide by qualified majority, necessitating support from 15 countries representing 65% of the EU population. The Polish government has already indicated its opposition to the agreement.
Trade Commissioner Marosz Szefczovicz explained that introducing the trade portion as a temporary agreement allows for quicker action, as full ratification by national parliaments often takes years, rendering the agreement outdated. – In our dynamic world, we must strive for access to every market and expedite our negotiations to align with partners who value free and fair trade and lower tariffs – he stated.
This proposal suggests that Poland needs allies to create a blocking minority to effectively oppose the agreement. The French government, which has previously voiced concerns, stated it would review the safeguards presented by the Commission.
Meanwhile, Raffaele Fitto, the Italian commissioner who also expressed previous doubts, announced on Facebook that the agreement would strengthen Europe globally, accompanied by concrete measures such as enhanced controls and inspections in partner nations, stricter food safety standards, and additional tools for safeguarding environmental and social standards.
Polish Agriculture Minister Stefan Krajewski told PAP that “the battle against the agreement’s current form is far from over.”
An EU source reported on Wednesday that the Commission’s safety brake commitment will be translated into a legal act adopted by the EU, incorporating a market monitoring mechanism for sensitive products. The Commission will update member states and the European Parliament biannually on market conditions, with reactive measures if disruptions arise.
The source also noted that the Commission views this mechanism as an additional safeguard to address concerns from certain member states, while believing that the quotas for importing agricultural products from Mercosur will sufficiently protect EU agriculture.
For instance, the tariff on 99,000 tons of beef per year will drop to 7.5%, representing only 1.5% of EU beef consumption, equivalent to about two hamburgers per person. Allowed poultry imports will account for 1.3% of annual EU consumption. – This is a minimal segment of the market we’re opening. Furthermore, the beef will still incur tariffs, but at a reduced rate – an EU official clarified.
Additionally, the Commission will facilitate the provision of potential compensations for farmers from the agricultural reserve in the subsequent budget post-2027, totaling 6.3 billion euros.
On the same day, the Commission also approved a new agreement with Mexico. (03.09.2025)
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