The European Union–Mercosur Agreement Promises Billions in Eliminated Tariffs, but Accusations Arise Against Brazil for Threatening the Amazon and Local European Production

Written by Noel Budeguer

Published on 03/09/2025 at 10:50

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The EU–Mercosur Agreement Provides Billion-Dollar Tariff Cuts and Agricultural Market Openings, but Faces Strong Opposition Due to Deforestation Risks, Environmental Impact, and Threats to European Agriculture

The European Commission is expected to present the formal proposal for the agreement between the European Union (EU) and Mercosur to the European Parliament for review and approval by member states this Wednesday.

The treaty, which has been negotiated for over two decades, could become one of the largest trade deals on the planet, but it also faces severe criticism from agricultural sectors, environmentalists, and national governments.

Tariff Reductions and New Agricultural Quotas

Among the central points of the agreement is the gradual elimination of import tariffs. Mercosur is expected to eliminate tariffs on 91% of European exports, including cars—which currently face a 35% tariff—within a period of up to 15 years.

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Arguments from Supporters

Supporters of the treaty highlight that it could reposition the European bloc in the face of growing dependence on China.

Countries like Germany and Spain see the partnership as strategic for ensuring access to essential minerals, such as lithium, used in batteries.

Additionally, the pact would open doors for European companies to participate in public tenders in Mercosur on equal terms with local suppliers—something unprecedented in agreements signed by the South American bloc.

According to the European Commission, the agreement would represent the largest tariff reduction ever negotiated by the EU, eliminating more than 4 billion euros annually in tariffs for European exporters.

Brussels argues that the additional quantity of beef and poultry from Mercosur would account for less than 2% of European consumption, thereby reducing the risks of imbalance in the domestic market. The document also outlines safeguards to respond to potential supply disturbances.

Another point emphasized is the strengthening of Mercosur’s position as a reliable partner. The European Union claims that by expanding trade ties, it will be able to diversify its production chains and reduce vulnerabilities regarding the United States and Asia.

The Strongest Criticisms

Despite the alleged benefits, the proposal is met with strong opposition. The environmental organization Friends of the Earth labeled the agreement a “climate destroyer,” claiming it would encourage deforestation in the Amazon and other forested areas to expand agricultural and mineral production for export.

European governments are also divided. France, with a strong lobby from ranchers, has conditioned its signature on safeguards to protect the local agricultural sector.

Italy and Poland have joined the criticisms, which jeopardizes the approval, as the three countries together have the power to block the measure.

**Car production line in Brazil: the sector is one of the main beneficiaries of tariff reductions in the EU–Mercosur agreement (Photo: Disclosure).**

European farmers have been protesting against the risk of cheaper commodities entering the market, particularly beef, which they claim would not meet the EU’s strict environmental and sanitary standards.

The European Commission insists that the standards will not be relaxed, but rural unions argue that enforcement will be insufficient.

Finally, environmental groups warn that, although the agreement includes commitments to curb deforestation by 2030, it lacks effective enforcement mechanisms.

This fuels fears that commercial expansion will come at the expense of sustainability and human rights.

A Political and Economic Stalemate

The EU–Mercosur agreement symbolizes the tension between global trade interests and environmental and social concerns. On one side, it represents the chance to create one of the largest free trade zones in the world, covering 800 million people and about a quarter of the world’s GDP.

On the other hand, it faces growing resistance from European public opinion and economic sectors worried about environmental impacts and unfair competition.

If approved, the treaty could redefine economic integration between South America and Europe.

If blocked, it will reinforce the perception that European climate and agricultural policy takes precedence over trade interests, further delaying Mercosur’s entry into major global value chains.

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The European Union–Mercosur Agreement Promises Billions in Eliminated Tariffs, but Accusations Arise Against Brazil for Threatening the Amazon and Local European Production

The EU–Mercosur Agreement Provides Billion-Dollar Tariff Cuts and Agricultural Market Openings, but Faces Strong Opposition Due to Deforestation Risks, Environmental Impact, and Threats to European Agriculture

Tariff Reductions and New Agricultural Quotas

Arguments from Supporters

The Strongest Criticisms

A Political and Economic Stalemate

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The European Union–Mercosur Agreement Promises Billions in Eliminated Tariffs, but Accusations Arise Against Brazil for Threatening the Amazon and Local European Production

The EU–Mercosur Agreement Provides Billion-Dollar Tariff Cuts and Agricultural Market Openings, but Faces Strong Opposition Due to Deforestation Risks, Environmental Impact, and Threats to European Agriculture

Tariff Reductions and New Agricultural Quotas

Arguments from Supporters

The Strongest Criticisms

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Seen from space, an image taken by an astronaut shows an unlikely oasis in the Saudi Arabian desert, protected by a terrain that slows the advance of sand, surrounded by green circles, remnants of an extinct lake and nearly 10,000 years of preserved history.

In Botswana, a salt flat of up to 16,000 km² that was once an African megalake spends months as an absolute white desert, but during the rainy season it transforms into a shallow sea that reappears from nowhere and can be seen from space in the middle of southern Africa.

While the U.S. still faces limitations in deep space, China is developing unprecedented technology with strategic satellites that maintain communication with the far side of the Moon and aims for dominance by 2030.

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For the first time, scientists have mapped the Etna magma system in almost real time and discovered where the volcano was storing large volumes of molten material before years of eruptions, revealing an underground reservoir that fills and reorganizes like a living organism beneath the mountain.

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