EU-Mercosur Free Trade Agreement Signed Amid Strong French Agricultural Opposition

On January 17, 2026, the long-awaited free trade agreement between the European Union and Mercosur was officially signed in Asuncion, Paraguay. This landmark treaty, negotiated over more than 25 years, aims to integrate a market of 700 million consumers representing 30% of the global GDP, and is expected to bolster European exports of cars, machinery, wines, and cheeses while opening EU markets to South American products like beef, poultry, sugar, rice, honey, and soy.

Despite the economic potential highlighted by European Commission President Ursula von der Leyen and other dignitaries at the signing ceremony—including Portuguese Prime Minister Antonio Costa and Brazilian President Luiz Inacio Lula da Silva—opposition remains strong particularly in France. French agricultural communities have raised serious concerns about the impact of cheaper South American imports on local producers and questioned whether these products will meet EU standards.

Reflecting this resistance, certain French local authorities, such as those in the Loiret region, have taken a stance against the agreement by banning South American food products from school cafeterias. French farmers continue their protests, worried about the treaty's consequences on their livelihoods and the broader agricultural sector. This opposition contrasts with the broader majority of EU member states that support the agreement, seeing it as a significant opportunity to strengthen diplomatic ties with Latin America and stimulate economic growth amidst a challenging global trade environment marked by protectionism and tensions.

The EU-Mercosur deal symbolizes a critical effort to deepen international cooperation and open new markets. However, it also spotlights the tension between promoting free trade and protecting local agricultural sectors—most vividly expressed by France's vocal response and concrete local bans on South American imports.