The beginning of 2025 brought stormy discussions on a free trade agreement between the European Union and the Mercosur countries, including Brazil, Argentina, Uruguay and Paraguay. The negotiated agreement aimed at abolishing duties and beginning fresh markets has become the subject of strong criticism from various political groups, agricultural organisations and social groups.
Protests in the shadow of politics
The agricultural opposition to the EU-Mercosur agreement culminated on 3 January at a demonstration in Warsaw under the slogan “5x STOP”. Protesters demanded, among others, the withdrawal of the Green Deal, restrictions on imports from Ukraine and opposition to the demolition of Polish forests. However, 1 of the key demands was to block the EU-Mercosur agreement, which, according to farmers, poses a threat to their interests.
Farmers' concerns arise from unequal conditions of competition. As stressed by Euro MP Anna Bryłka, Mercosur countries let chemical measures withdrawn from the EU market. This, according to critics of the agreement, could reduce production costs in South America, threatening European farmers.
Customs duties, quotas and their meaning
The agreement provides for the abolition of 91% of the duties on EU goods exported to Mercosur and 93% of the duties on Mercosur products entering the EU. However, many restrictions have been introduced, specified as import quotas, to prevent the destabilisation of the Union market. For example, agricultural products from Mercosur can account for up to 1.5% of EU consumption. Experts emphasise that the impact of the agreement on the EU economy will be limited and that consumers will benefit from lower prices.
Consumer versus farmer
Some economists point out that free trade benefits mainly consumers. Cheaper Mercosur products will save money that can be spent on another goods or services. As the critics of protectionism note, excessive protection of a single professional group – in this case farmers – can harm society as a whole.
However, the opponents of the agreement stress that the differences in regulations and production standards between the EU and Mercosur are besides large to be able to talk about fair competition. In their view, the removal of barriers to trade should be preceded by the harmonisation of environmental, wellness and work legislation.
Is food safety at risk?
The concept of "food security", frequently referred to by opponents of a contract, means a situation where all households have actual access to food. However, this argument can be utilized as a pretext for further regulation and subsidies, which may restrict marketplace freedom and affect higher prices for consumers.
Political consequences
The farmers protest showed that opposition to the EU-Mercosur agreement unites groups from different political poles. Both representatives of the Law and the Confederation and the Civic Coalition expressed concerns about the consequences of the agreement for Polish agriculture. At the same time, the increasing criticism of Green Deal policy shows that farmers are increasingly demanding changes at national and EU level.
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The EU-Mercosur agreement and the Green Deal rise large concern for European farmers
