EU and Mercosur Strike a Historic Farm Trade Accord

The European Union reached a provisional agreement to impose stricter controls on imports of farm products from South American countries in a trade deal with the Mercosur bloc. The accord faces opposition primarily from France and Italy, leading to added measures for farmer protection and revised trigger levels for imports.

The European Union reached a provisional agreement on Wednesday to implement tighter controls on imports of farm products stemming from a potential trade pact with the South American Mercosur bloc. The EU-Mercosur agreement, concluded last December after 25 years of negotiations, aims to create the EU's largest trade deal by tariff reductions.

However, the deal has faced criticism, with France and Italy refusing to support the agreement without additional protections for their farmers. To assuage opposition, the European Commission introduced a mechanism enabling suspension of Mercosur's preferential access for certain farm products like beef and sugar if imports surge or prices fall significantly.

Negotiators settled on an 8% trigger for initiating investigations, a compromise from the initial proposals of 5% and 10%. The Danish presidency confirmed the decision, which includes a declaration enforcing EU checks on production standards and supporting farmers, with inspections in Mercosur countries.