• 02 Jul, 2025

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Mercosur Agreement: France's resistance is crumbling

French President Macron shows openness towards the Mercosur agreement, while his Agriculture Minister is working on a blocking minority. Will he now give the EU's trade offensive a boost?

France's President Macron shows openness to the Mercosur agreement, while his Minister of Agriculture is working on a blocking minority. Does he give the EU's trade offensive a boost?

Possible cracks are appearing in the French leadership's stance against the free trade agreement between the European Union and the Mercosur states. While France's Minister of Agriculture, Annie Genevard, is reportedly working on a blocking minority among EU member states, President Emmanuel Macron recently showed willingness to compromise.

The EU-Mercosur Agreement

At the end of 2024, the European Commission and the South American Mercosur states reached a free trade agreement. The European Union consists of 27 member states, while the Mercosur includes Brazil, Argentina, Paraguay, and Uruguay. Both the European Parliament and the EU member states still need to approve the deal.

Mercosur: Macron wants "mirror clauses"

According to reports, Macron showed openness towards the agreement during an interview on Brazilian television on Friday, June 6.

The President believes it is possible to ratify the "strategically sensible" agreement by the end of the year if the contract is supplemented with "mirror clauses." This would subject imports from the South American states to European production standards.

Lula with Macron

The day before the interview was aired, Macron met with his Brazilian counterpart, Lula da Silva, in Paris. The Brazilian emphasized his willingness to dialogue and appealed to Macron to "open his heart."

Brazil is willing to discuss the contentious issues from the French perspective. Brazil will hold the Mercosur presidency from July to December. Lula was convinced that by the end of the presidency, the agreement would be finalized to everyone's satisfaction.

Agriculture Minister remains firm

However, Macron would still need to persuade parts of the government. On the day of da Silva's state visit, Agriculture Minister Genevard, along with her counterparts from Hungary and Austria, István Nagy and Norbert Totschnig, reaffirmed their rejection of the agreement in a press release.

The current geopolitical uncertainties do not change the flaws of the agreement, according to the ministers. Genevard traveled to Austria and Hungary in mid-May to forge an alliance against the free trade agreement.

Black-Red in Germany wants the Mercosur agreement

The coalition agreement of the new German government from CDU, CSU, and SPD includes a clear commitment to agricultural exports, unlike the previous government. This also applies to free trade agreements. The chapter on foreign policy states: "The agreement between the EU and Mercosur must finally be finalized."

EU Agriculture Commissioner travels to Brazil

EU Agriculture Commissioner Christophe Hansen plans to travel to Brazil at the end of October. Along with representatives from agriculture and the food industry, he plans a diplomatic visit to South America, as announced by Hansen last week.

Hansen is open to the free trade agreement with the South American Mercosur states. "We (the EU producers) also produce for export to third countries," Hansen said in Brussels at the end of 2024.

He recognizes a series of protection mechanisms in the agreement that protect farmers from imports of products with lower standards.