Paris protests erupt as Italy switches sides in major EU trade vote
European Union ambassadors are meeting in Brussels today, January 9, to launch a fast-track procedure to approve the long-awaited Mercosur trade deal.
Despite mass protests by French farmers in Paris, the agreement appears back on track after Italy withdrew its opposition, effectively dissolving the blocking minority.
European Commission President Ursula von der Leyen is prepared to fly to Paraguay this weekend to finalize negotiations. If a qualified majority is reached by Sunday morning, the deal—covering over €45 billion in trade—could be signed as early as Monday, January 12.
Farming protests and food safety
On Thursday, January 8, French farmers paralyzed central Paris with convoys of tractors reaching the Eiffel Tower and the Arc de Triomphe. They are protesting what they describe as unfair competition from South American producers who are not bound by strict EU regulations.
The primary concern involves food safety standards. While the EU bans growth hormones in cattle and chlorine washes for poultry, these practices remain legal in Mercosur nations. Farmers warn that the deal will flood the market with cheap, substandard products.
The shift in power
France, supported by Poland, Hungary, and Ireland, previously held enough weight to stall the pact. However, Giorgia Meloni’s Italy shifted its stance after securing specific concessions, leaving France isolated.
Under EU rules, stopping the deal requires a "blocking minority" of at least 13 member states or countries representing 35% of the European population. Without Italy, the remaining opposing nations no longer meet this threshold.
Geopolitics: Cars for beef
The deal, often dubbed a "cars-for-beef" swap, aims to eliminate tariffs on European industrial exports like cars, chemicals, and pharmaceuticals. In exchange, South American nations (Brazil, Argentina, Paraguay, and Uruguay) gain increased access to the European food market.
Beyond economics, the agreement is a strategic move to counter the global trade volatility following Donald Trump’s return to the White House. By securing ties with South America, the EU seeks to diversify its markets and reduce its reliance on US trade.
What is Mercosur?
Established in 1991, Mercosur is a South American trade bloc focused on the free movement of goods and citizens. While Venezuela remains suspended, the recent addition of Bolivia and associate members like Chile and Colombia has turned it into a massive economic zone.
For Europe, the deal represents a pivotal moment in its trade policy, balancing the industrial need for new markets against the survival of its traditional agricultural sector.
Translation by Iurie Tataru
