A EU-Mercosur trade deal could allow both sides to diversify away from the U.S. and China and create an integrated market of 780 million consumers but needs approval by the EU’s 27 member states.
A qualified majority of EU states would be sufficient to agree the deal but there is opposition within France, whose large beef farming sector is threatened by South American imports, Italy and Poland, while the Irish also have reservations. France says it will sign the agreement only if the interests of French and EU agriculture are safeguarded.
The European Commission says EU food safety and environmental standards will not be relaxed, bur Friends of the Earth has warned that it could lead to to increased deforestation in South America to meet demand for agricultural products and raw materials. While the deal includes commitments on the environment, critics say they lack enforceable measures.
