French Wine and Spirits Exports Plunge 26% in Two Years Amid EU-Mercosur Trade Debate

French wine and spirits exporters have voiced their support for the proposed trade agreement between the European Union and Mercosur, a bloc that includes Brazil, Argentina, Uruguay, and Paraguay. The French Federation of Wine and Spirits Exporters (FEVS) released a statement expressing its interest in the deal and its backing for what it calls a balanced commercial agreement. The organization sees the opening of new markets as essential for an industry facing ongoing challenges.

The draft treaty would eliminate tariffs on wines and spirits, which currently range from 20 to 27 percent. Exporters consider this reduction crucial for boosting sales in Mercosur countries. The FEVS describes the region as a major strategic opportunity at a time when the sector is experiencing declining sales both domestically and abroad.

A safeguard mechanism was adopted in Brussels as part of a compromise reached by European negotiators. The FEVS welcomed this measure, calling it a significant step forward. The mechanism is designed to monitor sensitive agricultural products and includes a commitment to intervene if markets are destabilized. This provision aims to address concerns from agricultural sectors such as meat and sugar producers, who fear increased competition from Mercosur imports.

Despite this support from wine and spirits exporters, most agricultural groups remain opposed to the agreement. Many are calling for its abandonment as European Union leaders gather in Brussels for a summit. On Thursday, thousands of farmers from across Europe demonstrated in the Belgian capital to protest against the deal, arguing that it threatens their livelihoods.

The FEVS represents an industry with annual revenues exceeding 32 billion euros, half of which comes from exports. The group believes that access to Mercosur markets could help offset falling sales elsewhere. French wine and spirits exports dropped by 12 percent in 2023 and by another 6.5 percent in 2024. In the first four months of 2025, exports declined by an additional 7.5 percent amid ongoing trade disputes with China and the United States, France’s two largest foreign markets.

As negotiations continue, the debate highlights divisions within France’s agricultural sector over how best to respond to global market pressures. While some see new trade agreements as vital for growth, others worry about increased competition and potential risks to traditional farming industries.