On December 18, 2024, French farmers resumed protests against the EU-Mercosur free trade agreement, which was recently signed by European Commission President Ursula von der Leyen. The protests took place near the Calais tunnel, with farmers expressing their concerns by dumping manure and parking tractors.
French Trade Minister Sophie Primas indicated that the agreement, which involves Argentina, Brazil, Paraguay, and Uruguay, commits only the European Commission and not individual member states, suggesting France's potential opposition to ratification.
The farmers' protests are primarily driven by fears of increased beef imports, as well as poultry and sugar. However, experts suggest that the anticipated increase in imports is modest and poses no existential threat to local producers. The EU's new agreement allows for the import of 99,000 tons of beef at reduced duties, which constitutes only 1.6% of the EU's total beef production.
Analysts note that the increase in beef imports is comparable to a minor addition in consumer demand, with the new quota expected to replace existing imports rather than significantly expand the market. The EU has implemented various safeguards to mitigate potential impacts on local farmers, including a phased introduction of the agreement over five years.
Despite concerns, experts believe that the overall benefits of the agreement outweigh the adjustments needed. The EU is expected to see a rise in agri-food exports, with projections indicating an increase of up to €4.4 billion by 2032. The deal also aims to enhance the EU's position as the world's leading agricultural exporter, while providing new market opportunities for European products.
In light of potential geopolitical shifts, including the return of US President-elect Donald Trump and the associated threats of tariffs, the EU-Mercosur agreement is viewed as a strategic move to diversify trade relations and strengthen the bloc's economic resilience.