European Wine Producers Back EU Mercosur Trade Agreement

This Friday, January 9, the European Union and Mercosur reached a free trade agreement after 25 years of negotiations. The deal will remove economic barriers and tariffs between the EU and the South American countries that make up Mercosur, which includes Brazil, Argentina, Uruguay, and Paraguay. The agreement is being described as historic by officials on both sides.

The European Committee of Wine Companies (CEEV) has welcomed the news. Ignacio Sánchez Recarte, secretary general of the CEEV, posted on LinkedIn that the committee supports the European Council’s decision to sign the agreement. He said that in a time of geopolitical and economic uncertainty, it is essential for the EU to strengthen trade relations with trusted partners. According to Sánchez Recarte, the agreement will bring clear benefits to the EU economy, especially for the European wine sector. He highlighted Brazil as a market with strong growth potential for EU wines and said that eliminating tariffs will create new opportunities for producers. The CEEV is now urging the European Parliament to ratify the agreement quickly.

The CEEV also released a statement emphasizing the need for diversification in trade relationships and pointing out that the EU–Mercosur agreement offers a strategic opportunity to reinforce cooperation with key markets. The organization believes that removing tariffs will help European wine producers become more competitive in South America.

However, not all sectors are satisfied with the outcome. While wine producers may benefit from easier access to South American markets, other agricultural sectors in Europe see the agreement as a threat. Protests broke out among farmers in several European countries on Thursday and Friday. Many farmers argue that the safeguards included in the agreement are not enough to protect sensitive products from increased imports or sudden price drops.

The measures designed to protect local markets include allowing tariffs to be reintroduced if market distortions are detected, advance payments under the Common Agricultural Policy, and temporary suspension of customs duties on fertilizers. Despite these provisions, concerns remain high among European farmers.

France has been one of the most vocal opponents of the agreement. Jean-Marie Fabre, president of the Independent Winegrowers of France, said that while opening new markets can be positive, it should not come at the expense of other agricultural sectors. Fabre argued that agricultural products should be treated separately in future trade agreements and called for food agreements to be separated from broader free trade deals.

Under the terms of the treaty, Mercosur will liberalize 91% of its imports from the EU, while the EU will do so with 92% of its imports from Mercosur countries. The process will be gradual and include quotas and safeguards intended to protect local industries. The agreement also sets stricter standards for environmental protection, labor rights, and food safety.

The European Commission estimates that this treaty could increase European exports by about €84 billion and create up to 756,000 additional jobs across member states. As debate continues over ratification in the European Parliament, supporters point to economic growth and new opportunities for sectors like wine, while critics warn about risks to other parts of Europe’s agricultural industry.