LATIN AMERICA ADVISOR

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

June 27, 2025

Why Has the E.U.-Mercosur Trade Deal Stalled Again?

Brazilian President Luiz Inácio Lula da Silva has urged French President Emmanuel Macron to move forward with the pending trade agreement between Mercosur and the European Union. // Photo: Ricardo Stuckert via Presidency of Brazil.

Q

A

Izabela Rodrigues, graduate fellow for Brazil and the Southern Cone at McLarty Associates:“The future of the E.U.-Mercosur agreement may be uncertain, but there is still strong momentum from Brazil and its partners to ensure the deal is finalized. During his June visit to France, President Lula urged President Macron to present concrete proposals, criticizing France’s protectionist stance aimed at shielding small farmers. French producers fear competition from Brazilian exports like soy and corn. While Lula reaffirmed Brazil’s commitment, he acknowledged France’s resistance but remained hopeful that continued dialogue will lead to consensus. The resistance from agricultural sectors not only in France, but also in Poland and Ireland, could significantly impact the deal’s approval. These countries fear unfair competition from Mercosur’s agribusiness, especially in beef and dairy, and they argue that allowing imports that do not meet E.U. standards could hurt farmers and weaken climate efforts. However, since…”

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Director,
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Merike Blofield
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Devry Boughner Vorwerk
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Joyce Chang
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Grupo Marhnos

Thomas F. McLarty III
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Beatrice Rangel
Director,
AMLA Consulting

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Head of Latin American Economics, Citi

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