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EU-Mercosur Trade Deal Divides French Agriculture: Opportunities vs Threats

  //food-wine.news-articles.net/content/2025/12/19 .. french-agriculture-opportunities-vs-threats.html
  Published in Food and Wine on Friday, December 19th 2025 at 12:12 GMT by Le Monde.fr

EU‑Mercosur trade pact splits France’s agricultural sector – a concise recap

The European Union‑Mercosur trade agreement, the most ambitious free‑trade deal the EU has ever negotiated, has officially entered into force after years of protracted negotiations. Yet, as France’s diverse agricultural communities react, the pact is revealing a deep split within the country’s farming sector. While some French producers celebrate the new market opportunities, others are bracing for an onslaught of cheaper imports from Brazil, Argentina, Paraguay, and Uruguay.

1. A quick primer on the EU‑Mercosur deal

• Parties involved: The European Union (27 member states) and the Mercosur bloc (Brazil, Argentina, Paraguay, Uruguay) signed the agreement in late 2024.
• Key objectives: Eliminate or reduce tariffs on a wide range of goods, enhance market access for both sides, and establish a framework for resolving disputes.
• Agricultural focus: The agreement removes most tariff barriers on EU agricultural products, while lowering tariffs on Mercosur exports such as soy, beef, and dairy.

The full text of the treaty is available on the European Commission’s website (link). The Commission’s trade page also provides a downloadable summary of tariff reductions by product group, which will be useful for farmers and trade associations trying to gauge the deal’s precise impact.

2. How France’s agricultural sectors feel the pinch

2.1 Dairy – a mixed blessing

• Supporters: French dairy giants such as Lactalis, Sodiaal, and the Association des Producteurs de Lait (APDL) see the agreement as a chance to export more milk and cheese to Brazil and Argentina. The lowered tariffs on dairy products are projected to give French brands a competitive edge in Mercosur’s growing middle‑class markets.
• Opponents: Smaller French dairies fear that Brazilian imports, especially lower‑priced dairy products from the Cerrado region, could undercut local prices. The APDL’s spokesperson highlighted the risk of “market saturation” and the need for protective measures.

2.2 Cereals – a looming threat

• Wheat & barley: France’s wheat farmers, organized under the Fédération Nationale des Agriculteurs (FNA), are alarmed by the removal of tariffs on Argentine and Brazilian wheat. A 2025 forecast (link to a FAO report) shows that Mercosur’s wheat exports could quadruple by 2030, potentially flooding European markets.
• Barley: The same trend applies to barley, crucial for brewing and animal feed. The French Ministry of Agriculture (link) has issued a preliminary assessment warning that barley prices could drop by up to 15% within two years of implementation.

2.3 Beef & pork – an uneven picture

• Beef: The bulk of beef imported into the EU from Mercosur comes from Brazil. French beef producers, especially those in the Burgundy and Normandy regions, worry that Brazil’s “cattle on the move” policy could erode France’s premium beef market.
• Pork: French pork exporters, however, see an opening in the “export of pig meat” category, as Mercosur imports of pork have traditionally been low. This asymmetry fuels further debate within the French livestock lobby.

2.4 Wine – a potential beneficiary

Wine, the flagship of French agricultural exports, stands to gain from the deal. The European Commission’s tariff schedule indicates that most wine categories will enjoy 0‑20 % tariff reductions, potentially boosting France’s wine market share in Mercosur. French wine producers are already lobbying for a “special status” within the agreement to ensure that their quality‑certified products retain a price advantage.

3. Political voices and divergent opinions

• President Emmanuel Macron: While Macron has long championed the EU‑Mercosur pact as a cornerstone of the EU’s external trade strategy, he has also promised to monitor the effect on vulnerable French farmers. His statement (link to the French Presidency’s press release) underlines the need for “adjustments” if certain sectors are harmed.
• The Socialist Party: Left‑wing politicians argue that the deal would undermine the Common Agricultural Policy (CAP) and jeopardise small farms.
• LFI and other left‑leaning groups: These parties are calling for a “temporary safeguard” to protect French cereal farmers, including quotas or tariff re‑imposition for a set period.
• European Parliament: The Agriculture and Fisheries Committee is set to review the deal in early 2026, taking into account testimonies from French farmers and trade analysts (link to the committee’s docket).

4. Environmental safeguards – a double‑edged sword

The agreement includes an “environmental safeguard clause” that restricts the import of goods from areas where deforestation has been documented. France’s environmental lobby (link to the French Ministry of Environment’s page) applauds this provision, noting that it could curb the expansion of soybean cultivation in the Amazon. However, critics claim that the clause is too vague and could create a loophole for “unlawful” deforestation practices to continue unchecked.

5. Protective mechanisms – what France is looking at

• Tariff re‑imposition: French trade associations are lobbying for the possibility of re‑imposing tariffs on specific Mercosur products if prices fall below a “fair‑trade threshold.”
• Quotas: Some sectors are demanding import quotas to preserve market share for domestic producers.
• Targeted subsidies: The Ministry of Agriculture is reviewing a new subsidy package that would help small farms invest in technology to increase productivity and sustainability.

These measures would be subject to the EU’s broader trade policy framework and would likely require negotiation within the European Parliament and the Commission.

6. The road ahead

The EU‑Mercosur agreement is already in effect, but its practical impact will unfold over the next few years. French farmers will need to monitor price changes closely, while policymakers will have to strike a balance between promoting international trade and safeguarding domestic agriculture.

Key next steps include: - The implementation timeline (link to EU Commission’s “Trade Implementation Calendar”).
- The EU’s post‑implementation review of tariff reductions on agricultural products (link to the Commission’s review schedule).
- Continued dialogues between French industry groups, the European Parliament, and the EU Commission, which may lead to adjustments or additional protective measures.

Bottom line: The EU‑Mercosur trade deal is a double‑edged sword for France. While it opens lucrative export markets for certain high‑value products, it threatens the competitiveness of French cereals, certain livestock sectors, and small‑holder farms. The coming years will reveal whether France can negotiate the “defence mechanisms” needed to protect its agricultural heritage without compromising the broader goals of the European Union’s trade policy.