EU finalises farmer protections, advancing Mercosur trade deal

The European Union took a step toward approving its massive trade agreement with South American nations, finalizing measures to protect farmers once the pact is adopted.

At a meeting on Thursday, EU member states gave a preliminary nod to the safeguards, according to people familiar with the talks.

The measures would shield agriculture and food producers from low-priced competition or import surges from the new trading partners – Argentina, Brazil, Paraguay and Uruguay, known as the Mercosur bloc. The European Commission, the EU’s executive arm, proposed the protections to appease France and others who fear the trade pact could harm EU farmers.

The Mercosur trade deal would be the EU’s largest ever, concluding more than 25 years of negotiations. Under the agreement, European businesses would save over four billion euros (US$4.6 billion) in tariffs annually and expand their access in Mercosur markets, according to the commission.

In addition, the agreement would bring together the two regions as US President Donald Trump’s tariffs rattle the global trading system and China restricts access to key minerals.

Both sides are pushing to sign the deal during an upcoming Mercosur summit in Brazil, which may be held on December 20.