Finance
EU reaches initial agreement on tighter EU-Mercosur safeguards
Published by Global Banking & Finance Review®
Posted on December 17, 2025
2 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on December 17, 2025
2 min readLast updated: January 20, 2026
The EU has agreed on tighter safeguards for the Mercosur trade deal, addressing concerns by setting an 8% trigger for import investigations.
By Philip Blenkinsop
BRUSSELS, Dec 17 (Reuters) - The European Union struck a provisional deal on Wednesday to set tighter controls on imports of farm products resulting from a planned trade agreement with South American bloc Mercosur, potentially meeting some complaints of critics of the deal.
The EU and the bloc of Argentina, Brazil, Paraguay and Uruguay concluded negotiations last December to create the EU's largest ever trade accord in terms of tariff cuts, some 25 years after negotiations were launched.
The deal has proven contentious. Countries led by France and Italy have said they are not ready to back the trade deal and have demanded additional measures to protect their farmers.
The European Commission presented the accord for approval in September and sought to soften opposition by adding a mechanism that would allow Mercosur preferential access for some farm products, such as beef, poultry and sugar, to be suspended.
It said the trigger for launching an investigation should be if the import volumes rose by more than 10% per year or prices fell by that amount in one or more EU members. However, the European Parliament voted on Tuesday for a lower trigger level of 5%, compared with a three-year average of imports.
Negotiations started late on Wednesday on a compromise between representatives from the parliament and counterparts from the Council, the grouping of EU governments.
In the end, they decided that 8% should be the trigger, the Danish presidency of the EU said.
They also agreed a declaration spelling out EU measures to carry out checks, including in Mercosur countries, to support farmers and to insist that production standards such as on pesticides and animal health will be met.
(Reporting by Philip Blenkinsop and Inti Landauro, editing by Sudip Kar-Gupta and Nick Zieminski)
Agricultural imports refer to the products such as crops, livestock, and processed foods brought into a country from abroad. These are often subject to regulations to protect local farmers.
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and managing the day-to-day operations of the EU.
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