EU Proposes New Regulation to Protect Farmers in Mercosur Trade Deal

The European Commission has officially proposed a new regulation aimed at safeguarding European Union farmers from potential market disturbances resulting from the long-negotiated EU-Mercosur trade deal. Announced on Wednesday, October 8, 2025, the move is a direct response to widespread concerns from the agricultural community about increased competition from South American imports.

Understanding the Controversy

For over two decades, the EU and the Mercosur bloc—comprising Brazil, Argentina, Paraguay, and Uruguay—have been negotiating one of the world’s largest free-trade agreements. The deal promises to slash tariffs and open markets, creating significant economic opportunities. However, it has faced fierce opposition from European farmers, who fear they will be unable to compete with cheaper agricultural products, particularly beef, poultry, and sugar, from Mercosur countries where production standards and costs are different.

The primary concern revolves around the potential for a surge in imports that could depress prices and threaten the livelihoods of smaller, family-run farms across the EU. This has led to numerous protests and has made the deal’s ratification a politically sensitive issue in several member states.

What Are the New Safeguard Measures?

To address these fears, the Commission has introduced what it calls an “unprecedented” and “cast-iron” layer of protection. The proposed regulation establishes a system of enhanced monitoring and rapid intervention for sensitive agricultural products.

Key components of the new safeguards include:

• Enhanced Monitoring: The EU will closely track imports of sensitive products like beef, poultry, rice, sugar, ethanol, honey, eggs, and garlic.
• Clear Triggers: An automatic investigation will be launched if the import price from Mercosur is at least 10% lower than the EU price for a similar product, coupled with a significant rise in import volumes.
• Rapid Response: If an investigation confirms “serious injury” or the threat of it to EU producers, the EU can swiftly reimpose tariffs or withdraw tariff preferences on the products causing the issue. This process is designed to be completed within four months.

How It Works in Practice

The Commission will report on the impact of these imports to the European Parliament and member states every six months. An EU member state can also request an investigation if it believes there are sufficient grounds. The regulation aims to provide a reliable safety net, assuring farmers that the EU is prepared to act decisively to protect their interests without derailing the entire trade agreement.

The deal allows for a quota of 99,000 tonnes of Mercosur beef to enter the EU at a reduced tariff of 7.5%, phased in over five years. The new safeguards are designed to manage this and other import quotas effectively.

Benefits and Drawbacks of the Deal

While farmer concerns are prominent, the EU-Mercosur agreement also offers benefits for the European agricultural sector. The deal is set to eliminate high tariffs on key EU exports to the growing Mercosur market.

Furthermore, the agreement will protect over 350 European Geographical Indications (GIs), such as Prosciutto di Parma, from imitation in Mercosur countries. Proponents argue that this will secure a premium market for high-quality European products.

The Road Ahead

The proposed regulation must now be approved by the European Parliament and the EU member states. The Commission is urging for a swift adoption to build confidence within the agricultural sector before the final signature of the EU-Mercosur trade deal. The success of this new protective framework will be crucial in determining whether one of the world’s most ambitious trade agreements can finally overcome its last major hurdle and come into force.

FAQ

What is the EU-Mercosur trade deal?

It is a free trade agreement between the European Union and the Mercosur countries (Brazil, Argentina, Paraguay, and Uruguay). It aims to reduce tariffs and increase trade, creating one of the world’s largest free-trade areas.

Why are EU farmers concerned about the Mercosur deal?

EU farmers are worried about increased competition from cheaper agricultural imports, particularly beef, poultry, and sugar, from Mercosur nations. They fear this could lead to lower prices and threaten their businesses, as production standards and costs are not the same.

What new protections has the EU proposed for farmers?

The European Commission has proposed a regulation with ‘safeguard measures.’ This includes enhanced monitoring of sensitive imports, clear triggers for investigations (like a 10% price drop), and the ability to quickly reimpose tariffs if EU producers are being harmed.

Which agricultural products are considered 'sensitive'?

The EU has identified several sensitive products, including beef, poultry, rice, honey, eggs, garlic, ethanol, and sugar, which will be subject to enhanced monitoring under the new regulation.