MercoPress. South Atlantic News Agency

EU gives nod to Mercosur FTA despite fragmented France's rejection

Von der Leyen will sign the treaty in Asunción on Monday

A qualified majority of European Union (EU) member states voted Friday to approve the landmark Free Trade Agreement with the Southern Common Market (Mercosur). The decision marks a historic geopolitical shift, positioning the EU to counter rising US tariffs and Chinese competition, even as it ignites a firestorm of domestic unrest in France.

The approval allows European Commission President Ursula von der Leyen to proceed to Asunción, Paraguay, on Monday to sign the treaty alongside leaders of Argentina, Brazil, Uruguay, and Paraguay.

The agreement’s fate hinged on the stance of Italy, which had previously sided with Paris' “rejectionist” front. Italy’s Prime Minister Giorgia Meloni leveraged the stalemate to extract significant concessions. Brussels responded with a €45 billion boost to the Common Agricultural Policy (CAP) and reinforced “emergency brake” safeguards for sensitive products.

With Rome moving to the “Aye” column, the pro-trade bloc, supported by Germany and Spain, surpassed the 65% population threshold required for a qualified majority, effectively isolating France and like-minded Hungary, Poland, and Ireland.

The deal creates the world's largest free-trade zone with a population of some 700 million consumers, thus bringing about far-reaching implications for both industrial and agricultural sectors:

For the EU, the understanding eliminates €4 billion in annual duties on exports like automobiles, machinery, pharmaceuticals, and luxury goods (wines and cheeses). On the other hand, Mercosur provides preferential access to European markets for beef, poultry, sugar, and soybeans through duty-free quotas.

The deal further secures Europe’s access to critical raw materials, such as lithium from Argentina and graphite from Brazil, which are essential for the green energy transition, adding independence from Chinese supply chains.

The vote has triggered immediate and volatile pushback across Europe. Thousands of French farmers organized by the FNSEA and Coordination Rurale have descended on Paris, blockading the A13 highway and surrounding landmarks like the Arc de Triomphe. A “siege” of the Rungis food market is planned for later Friday.

Additionally, a Motion of Censure was to be presented before the National Assembly against the government of Prime Minister Sébastien Lecornu for “betraying” French food sovereignty. Furthermore, the Green Party has slammed the “Sustainability Annex” as a “legal fiction,” warning it lacks the “teeth” needed to prevent deforestation in the Amazon.

Following Monday's official signing ceremony in Asunción, Paraguay, ratification debates will begin in the European Parliament, where opponents claim they have already mobilized 150 MEPs to block the deal that now needs to pass through the national parliaments of all 31 signatory nations. A single rejection at the national level could still sink the agreement.

In Paris, opposition leaders have already branded the day a “humiliation” for France, accusing President Emmanuel Macron of “posturing” while failing to build the necessary alliances in Brussels. RN Leader Jordan Bardella confirmed that, in addition to actions against Lecornu, a second motion would be filed in the European Parliament against Commission President Ursula von der Leyen. Other groups also call for Macron's departure.