French Parliament reasserts opposition to EU-Mercosur deal

French lawmakers on Thursday reiterated their opposition to the trade agreement negotiated between the European Union (EU) and the South American Mercosur bloc, casting a cloud over the potential implementation of the deal.

Argentina, Brazil, Paraguay and Uruguay, on behalf of Mercosur, and the European Commission reached a trade agreement at the end of 2024 that has caused concern among farmers and environmentalists, not least in France.

The treaty still needs to be ratified before it can enter into force, with key votes at a European level from December onwards.

Approval from the EU Council, which brings together the 27 member countries and from the European Parliament is required for its implementation.

France on its own cannot block the agreement in the EU Council, as its adoption requires a qualified majority. Brussels expects this green light to come next month.

Approval by the European Parliament is predicted to be more closely contested.

On Thursday, lawmakers in France’s lower house unanimously approved a resolution put forward by Jean-Luc Mélenchon’s left-wing party La France Insoumise (“France Unbowed,” LFI), urging the government to oppose its adoption.

Addressing deputies in the National Assembly, Europe Minister Benjamin Haddad reiterated France’s position that “the agreement as concluded in 2024 is not acceptable in its current form.”

But he stressed that he had obtained an “achievement” – a strengthening of European Commission safeguard clauses. He called for them to be adopted swiftly before any vote on the EU-Mercosur deal.

“This progress, which is useful and necessary, is not sufficient today. It is not enough,” added Haddad, who highlighted “mirror” clauses designed to ensure fair standards and stricter sanitary controls.

The free-trade agreement aims to boost exports of European cars, machinery and wine to Mercosur countries, in exchange for easing the entry of South American beef, sugar, rice and soybeans.

French farmers fear their market could be flooded with agricultural products from Mercosur, seen as more competitive, but the European Commission has pledged to intervene in the event of market destabilisation.

Lula: Deal will be signed next month

Last week, Brazil’s President Luiz Inácio Lula da Silva said that the trade deal will be signed on December 20 during the bloc’s Mercosur Leaders’ Summit in Foz do Iguaçu, in the state of Paraná. 

In Johannesburg, South Africa, during the G20 Summit, Brazil’s leftist leader said it was a “very special moment” for both the South American and European blocs. 

He predicted that once the deal was signed, an intense phase of work would begin to turn the text into concrete results. 

“There’s still a lot of work to do, but it will be signed,” said Lula.

Addressing French opposition to the deal, the Brazilian leader played down speculation over problems and emphasised that the Mercosur was not “signing with France” but “signing with the European Union."

Talks over an accord began formally in 1999. According to the diplomatic negotiators of the deal, the treaty would create a market of more than 720 million consumers and a combined gross domestic product of US$22 trillion. 

Lula said implementation would create “the biggest trade deal in the world.”

The understanding is viewed as a strategic opportunity for both parties: for the European Union, it provides a way to diversify markets in the face of global competition from the United States and China; for the Mercosur nations, particularly Brazil, it would add a major boost for agricultural and industrial exports.

– TIMES/AFP/PERFIL