economy

January 9, 2026

EU states back controversial Mercosur deal with Latin American countries

Agreement after 25 years of negotiations prompts farmers to block roads in Paris, Brussels and Warsaw

EU states back controversial Mercosur deal with Latin American countries

TL;DR

  • EU member states approved the Mercosur free trade agreement with Argentina, Brazil, Paraguay, and Uruguay.
  • The deal ended 25 years of negotiations but sparked protests from farmers in several EU countries.
  • Opposition parties in France are attempting a vote of no confidence over the agreement.
  • Ursula von der Leyen is expected to formally sign the agreement, projecting significant economic benefits for both sides.
  • The agreement is seen as a strategic move to deepen economic ties with the global south and reduce reliance on China for critical minerals.
  • Farmers express concerns about unfair competition and potential damage to their industries and food security.
  • Environmental groups warn that the deal could lead to increased deforestation and worsened human rights conditions in sensitive ecosystems.

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