Philenews

EU-Mercosur Deal: Concerns and Repercussions

Published January 10, 2026, 12:12
EU-Mercosur Deal: Concerns and Repercussions

The European Union has approved the signing of the trade agreement with Mercosur (Brazil, Argentina, Uruguay, Paraguay, and Bolivia) after 25 years of negotiations. The goal is to create a large free trade zone with reduced tariffs and enhanced economic growth. However, the agreement is causing strong reactions from European farmers, who fear unfair competition from Latin American countries due to lower production costs and different quality standards. Cyprus, despite assurances of 'safeguard mechanisms' for sensitive agricultural products, expresses concerns about the impact of the agreement on local agricultural production, given the specific characteristics of Cypriot agriculture and its limited scale. The agreement is expected to open the market and create new balances, but its success depends on the ability of European countries to protect their farmers and ensure fair competition. The reactions of farmers, with road blockades and expressions of anger, highlight the gap between political decisions in Brussels and the real concerns of people working in rural areas.