EU-Mercosur Trade Agreement Postponed Amid French Agricultural Protests and Health Crisis

The planned signing of the EU-Mercosur trade agreement has been postponed until January 2026 due to significant pressure from France and Italy, driven in large part by widespread protests from French farmers. European Commission President Ursula von der Leyen expressed confidence in reaching a deal by January despite the delay, which came after intense objections from French agricultural unions and governmental demands for stronger protections.

Thousands of farmers protested in Brussels, leading to clashes with police and roadblocks disrupting travel across France. The FNSEA, France's principal agricultural union, remains firmly opposed to the Mercosur deal, citing fears of unfair competition from imports like meat and soy from South American countries. French President Emmanuel Macron welcomed the postponement but insisted on more robust guarantees for farmers before consenting to the agreement. Macron emphasized that it was too early to confirm agreement but indicated support could come in January pending stronger safeguards.

Meanwhile, the French government continues to confront an outbreak of nodular dermatitis affecting cattle. Agriculture Minister Annie Genevard announced an accelerated vaccination campaign with 900,000 doses delivered, aiming to rapidly vaccinate 750,000 cattle on farms in the southwest by December 31. Despite four confirmed cases in the region, there are presently no active outbreaks in France. A scientific dialogue unit has been established to explore alternatives to livestock culling, easing farmer concerns around control measures.

Prime Minister Sébastien Lecornu is engaging with agricultural unions, balancing government measures including animal movement restrictions and vaccination policies against protest disruption. The government clearly stated that it will not tolerate any additional blockades during the Christmas holidays, warning farmers to refrain from further disruptions.

Genevard also reiterated the government's stance against the current Mercosur agreement, demanding stronger protections and a stable Common Agricultural Policy (CAP) budget of 65 billion euros, along with calls to neutralize fertilizer taxes. The FNSEA remains mobilized to continue opposing the Mercosur deal until satisfactory protections are secured.

This postponement marks a significant delay in the 25-year negotiation saga of the free trade agreement, which aims to boost EU exports of products like vehicles, machinery, wine, and spirits to South America while easing Mercosur imports into Europe. The current tensions highlight the deep challenges faced in balancing trade liberalization with protecting French agricultural interests and managing a serious animal health threat.