The EU Commission’s official signing of the Mercosur Free Trade Agreement has set off alarm bells within the European agricultural sector.
The EU Poultry Meat Association (AVEC) and other farming organizations strongly oppose the deal.
The agreement, finalized on December 6 by Commission president Ursula von der Leyen, and leaders from Brazil, Argentina, Paraguay, and Uruguay, has been lauded by its proponents as a historic step toward boosting trade, sustainability, and geopolitical ties.
However, critics argue that the pact sacrifices the EU’s agricultural sovereignty and sustainability standards for economic gains.
AVEC: A ‘trade-off’ at the expense of farmers
AVEC secretary general, Birthe Steenberg, condemned the accord: “The EU-Mercosur agreement isn’t just a trade deal; it’s a trade-off.”
According to AVEC, the deal prioritizes short-term export benefits while exposing the EU to dependency on Mercosur countries for key agricultural products, including poultry, beef, sugar, and rice.
The additional quota of 180,000 tons of poultry meat from Mercosur under the deal is equivalent to the annual production of countries like Finland, Sweden, and Denmark combined, AVEC highlights.
This influx would bring total poultry meat imports from Mercosur to 1.1 million tons annually, representing 9% of EU consumption.
Such volumes threaten the economic viability of EU poultry farmers, particularly as imported products target high-value cuts like chicken breasts, a cornerstone of European producers’ profitability, comments the trade group.
Undermining standards and sustainability
EU farmers adhere to some of the highest standards globally for animal welfare, environmental protection, and food safety. However, the influx of agricultural imports produced under less stringent requirements creates an uneven playing field, critics argue.
This imbalance is exacerbated by increasing regulatory burdens on EU producers to meet sustainability goals, which raise production costs while non-EU competitors face fewer restrictions.
The deal also risks eroding the EU’s strategic autonomy in agriculture, AVEC warns, emphasizing that current production practices in Mercosur countries often fail to meet EU standards for plant protection, labor rights, and environmental sustainability.
However, the Commission outlined that deal would see an enhanced commitment on sustainability from the Latin American countries concerned.
This deal takes the EU-Mercosur sustainability commitments to the next level through making the Paris Agreement an essential element of the EU-Mercosur relationship, with concrete commitments to halt deforestation, and clear and enforceable commitments on sustainable development, including on labor rights and sustainable management and conservation of forests, according to the EU executive body.
It also noted that €1.8bn in EU support will facilitate the fair green and digital transition in Mercosur countries.
Broader agricultural opposition
EU farming lobby, Copa and Cogeca, echoed AVEC’s concerns.
Copa president, Massimiliano Giansanti, criticized the Commission for prioritizing the agreement without addressing the vulnerabilities of the EU’s farming sector, especially sensitive commodities like beef, poultry, and sugar.
“This sends a very worrying message to millions of farmers across Europe,” he said, urging member states and the EU Parliament to reject the current terms.
Cogeca president, Lennart Nilsson, added that while EU farmers support trade, agreements must be fair and balanced. “The current deal is using the agriculture sector as a bargaining chip to benefit other industries,” he said.
