Dialogos

EU-Mercosur Deal Approved Despite Opposition: Implications for Farmers, Economy, and Greece

Published January 9, 2026, 15:00
EU-Mercosur Deal Approved Despite Opposition: Implications for Farmers, Economy, and Greece

The trade agreement between the European Union and Mercosur (Brazil, Argentina, Paraguay, and Uruguay) has been approved despite strong opposition from five member states (France, Poland, Austria, Ireland, and Hungary) and Belgium's abstention. The agreement secured the necessary qualified majority, with support from at least 15 countries representing over 65% of the EU population. The agreement provides for the removal of tariffs and trade barriers, facilitating EU exports of products such as wine, spirits, cars, and industrial equipment. Simultaneously, it allows for the import of agricultural products from Latin America, including meat, sugar, and soybeans. The agreement is causing concern among European and Greek farmers, who fear unfair competition due to the lower production costs in Mercosur countries. Therefore, safeguard measures have been included in the agreement to be activated in the event of a sudden increase in imports. German industrialists welcomed the deal, estimating it will save around four billion euros annually and secure access to critical raw materials, such as lithium and copper, essential for the green transition.