The European Union plans to sign the Mercosur trade deal in January 2026 after delays tied to France and Italy pushing for tougher safeguards and farm protections.

Over the past two weeks, EU officials signaled progress toward member-state approval, though the Commission has not formally set a final date.

France and Italy are pressing for stronger safeguards, import controls, and stricter standards to shield European farmers from Mercosur competition.

Removing tariffs on olive oil through the deal could lower costs for consumers and boost competition, with benefits depending on market dynamics in Argentina and Uruguay.

Germany and Spain back the deal, seeing it as advantageous to their industries amid global competition from China and the U.S.

The coverage frames regulatory scrutiny and risk considerations for stakeholders, aligning with MLex’s focus on legal and regulatory developments.

Ratification requires at least 15 member states representing 65% of the EU population, plus a simple majority in the European Parliament; several large member states have questioned or opposed the deal, collectively about 45% of the EU population.

Italy is ready to sign once farmers’ feedback on safeguards and financial support is received; the Commission has proposed a multi-billion-euro fund to ease farmer concerns.

The 25-year negotiation would create the world’s largest free-trade area, linking the EU with Mercosur and potentially boosting EU exports while allowing South American meat, sugar, rice, honey, and soybeans into Europe.

The agreement would span 720 million people across Argentina, Brazil, Paraguay, Uruguay, and the EU, creating the world’s largest free-trade area by removing most trade barriers.

Negotiations have stretched for more than 25 years, involving Brazil, Paraguay, Argentina, and Uruguay, with the prospect of major bilateral trade gains if signed.

There is notable opposition in some EU countries (notably France and Italy) and support from others (Germany and Spain) who see potential industrial benefits amid global trade tensions.