Agriculture: why France opposes the free trade agreement with Mercosur

Baptiste Morin, edited by Gauthier Delomez / Photo credits: Jean-Christophe VERHAEGEN / AFP 6:19 a.m., February 1, 2024

Emmanuel Macron is in Brussels this Thursday, where he is due to meet with the President of the Commission, Ursula von der Leyen, particularly around the issue of the Mercosur free trade agreement. Opposed to this text, the head of state is still not sure of winning his case.

Haro on Mercosur for Emmanuel Macron. The French president is expected in Brussels this Thursday, to speak with the President of the European Commission Ursula von der Leyen, in a context of discontent among farmers. The head of state is in fact opposed to this free trade agreement which links the European Union, Argentina, Brazil, Uruguay and Paraguay.

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If France has been unfavorable to Mercosur since the end of negotiations in 2019, it is because the text plans to facilitate the importation of agricultural products from these Latin American countries into the European Union. This would include sugar, poultry or even beef. These products cost less to produce for Brazilian, Argentinian, Paraguayan or Uruguayan farmers, in particular because the latter have fewer health or environmental standards to respect.

France calls for binding clauses

So to avoid what it describes as “unfair competition”, Paris is seeking to amend the free trade agreement with binding clauses. Concretely, the Mercosur countries should comply with European standards. In the camp of those opposed to the text, France can count on the Netherlands or Austria. But opposite, there is Germany which is in favor of the text. Berlin is counting on this free trade treaty to increase its trade with South America. This is particularly why Emmanuel Macron is not sure of winning his case.

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At the heart of the agreement is also the removal of customs duties on cars and machine tools, two specialties of German industry. During a visit to Brazil last December, German Chancellor Olaf Scholz was growing impatient. He judged that the discussions in Brussels had lasted long enough.