Agricultural co-ops have reacted to the European Commission’s new proposals for the EU-Mercosur trade deal, presented to the European Council on 3 September.
The deal, which has been in discussion for 25 years, has met with resistance from several EU member states, including France, Poland and Italy. Meanwhile, federations representing agri co-ops in Mercosur countries, such as Coninagro in Argentina, have largely welcomed the proposed deal, which, they argue, could help their co-op members access new international markets.
The Commission says the deal will increase EU agri-food exports to Mercosur countries (Argentina, Bolivia, Brazil, Paraguay, and Uruguay) by almost 50%.
“Our agreements with Mercosur and Mexico are important milestones for the EU’s economic future,” said Commission president Ursula von der Leyen. “We are continuing to diversify our trade, foster new partnerships and create new business opportunities. EU businesses and the EU agri-food sector will immediately reap the benefits of lower tariffs and lower costs, contributing to economic growth and job creation. The EU is already the world’s biggest trading block, and these agreements will cement this position”.
Under the proposed deal, preferential agri-food imports from Mercosur will be limited and safeguards will be introduced to protect sensitive European products against any harmful surge in imports from Mercosur. The Commission also says that the deal does not modify any EU sanitary and phytosanitary (SPS) import requirements and has committed to closely monitor potential market disruptions for EU producers of the most sensitive products, such as beef and poultry through a declaration attached to the agreement.
However, Copa and Cogeca, which represent European farmers and agricultural co-ops, said the Commission’s final proposal fell short of reassuring farmers.
They argued that while the initiative “clarifies certain aspects of safeguard implementation, critical questions remain over how such a unilateral legal act would be voted on, enforced, and accepted by Mercosur countries as a binding commitment by the Commission”.
Copa and Cogeca added their concerns around the divergences in production standards and the sustainability challenges remain unsolved.
“The Commission may insist it has ‘listened to farmers,’ but facts indicate clearly that EU agriculture continues to be treated as a bargaining chip in trade negotiations,” they said.
The Commission’s approach to the deal mirrors its take on the recent US trade deal, added Copa and Cognac, warning that “sensitive agricultural sectors already under pressure risk suffering unbearable cumulative impacts”.
The two apexes have already expressed concerns over the the future of the Common Agricultural Policy (CAP) and the EU’s budget, known as the Multiannual Financial Framework (MFF), which, they say, could worsen the impact of an EU- Mercosur trade deal.
“Key decisions on the future of the Common Agricultural Policy (CAP) and the Multiannual Financial Framework (MFF) are still pending. Yet the Commission is already promising a ‘safety net’ for the EU–Mercosur agreement – an assurance that lacks credibility and only adds to the existing confusion,” they said.
The ratification process suggested by the Commission was also criticised by Copa and Cogeca due to its split approach. The Commission has chosen to split the trade deal agreement in two parts, the first focusing on the trade component which requires the approval of the Council of the EU (by qualified majority) and the European Parliament (by majority), and the second focusing on the political aspect of the deal, which will require the approval of national parliaments.
“While trade is indeed an exclusive EU competence, bypassing national parliamentary scrutiny on such a politically and economically sensitive deal undermines democratic legitimacy and amounts to a political push-through,” the apexes said. “Given the initial negotiating mandate and the far-reaching implications for European agriculture, national parliaments should also be consulted.
“Our sector’s sensitivities, sustainability efforts, production standards, and the trust of citizens must be fully respected and protected. This agreement fails to meet these requirements. We therefore urge the Council and MEPs to reject the Commission’s proposal.”
Brazil’s National Union of Family Farming Co-operatives (UNICAFES), which represents more than 1,500 cooperatives and over 1 million family farmer members, also welcomed the deal but expressed concerns over asymmetries, non-tariff barriers, and regulatory hurdles which often disadvantage smaller producers and co-operatives. The union calls for preferential mechanisms for family farming / co-operatives, formalising co-operation programmes for sustainable agriculture, climate-smart techniques, capacity building, and technology transfer between EU and Mercosur stakeholders, and technical support, capacity grants, and transitional phases for small co-operatives to meet the EU’s high standards.
“The EU–Mercosur Agreement can become a tool for inclusive development, if structured with fairness, sustainability, and social justice at its core — not merely an instrument benefiting large-scale commodity exporters,” it said. “Our co-operatives, already committed to agroecology, democratic governance, and Fairtrade principles, stand ready to engage constructively. But we call on negotiators to ensure that this agreement embeds the pledge of unification of Fairtrade standards, fosters technical co-operation, and creates real market opportunities for family farmers. In this way, trade between our regions can advance not only economic integration, but also a shared commitment to sustainability, equity, and solidarity across the Atlantic,” it added.
