EU–Mercosur trade agreement has come into force

The European Commission has opted to provisionally apply the trade elements of the deal while it is being examined by the European Court of Justice (ECJ), a process that could take up to two years.

The referral to the court followed a vote by MEPs in January, but critics argue the decision has inadvertently allowed the agreement to proceed via an alternative route.

Midlands-North-West MEP Maria Walsh said: “The trade elements of the Mercosur deal are set to apply for Irish farmers from tomorrow - without a full vote on the deal in the European Parliament. This outcome is due in no small part to the decision by some MEPs to refer it to the European Court of Justice earlier this year.

“While I strongly oppose the Commission’s decision to provisionally element the deal, it comes as no surprise. I warned my fellow MEPs that referring Mercosur to the ECJ would not block the deal – it would only change the route by which it comes into force."

The agreement, which will allow an additional 99,000 tonnes of beef imports from Mercosur countries at significantly reduced tariffs, has long divided opinion across Europe.

The deal gives Mercosur a new 99,000‑tonne annual beef quota into the EU at a 7.5% tariff, down from current rates of up to 20% on some cuts (Image: Getty Images)

Supporters, including Germany and Spain, argue it will help offset global trade pressures and reduce reliance on China for key resources.

However, strong opposition remains among member states such as Ireland and France, where concerns centre on increased imports undercutting domestic producers, alongside environmental fears linked to deforestation.

Sinn Féin MEP Kathleen Funchion said new economic analysis reinforced those concerns. “The latest research finds the commission’s economic forecasts unrealistic and that the only big winner from the deal is a handful of large companies in Europe.

“This will come at the expense of small family farms, who will come under pressure due to price imports, and the Mercosur economies themselves which this report expects to shrink due to the deal.

“It is beyond clear that the cost of this deal far outweighs the benefits for both sides.

“After all the underhanded tactics of the commission, it is not too late to take on board these new expert economic findings, and finally listen to the farmers who stood up against the deal."

Her party colleague Lynn Boylan was more direct in her criticism, describing the agreement as ‘a rotten deal’.

“This is further evidence that Mercosur is truly a rotten deal which will only benefit a handle of corporations, while sacrificing our environment, threatening our public health, and sabotaging our small farmers.

“The economic argument for Mercosur has always been less than convincing to say the least, with appeals to global trade liberalisation to mitigate Trump’s damaging agenda coming at an opportunistic time.

Critics, including Irish MEPs Maria Walsh, Kathleen Funchion and Lynn Boylan, say the move sidelines parliament (Image: Getty Images)

“The reality is, Mercosur is a life-ring for a small number of large European companies and everyone else is supposed to pay for it to one extent or another.”

Recent analysis commissioned by Climate Action Network has added further weight to concerns, suggesting the economic benefits of the deal may be overstated or could ‘disappear altogether’. The study indicates that even small reductions in farmgate prices could have serious consequences for EU agriculture.

According to the report, a projected 2% drop in beef prices could push thousands of farms into economic vulnerability, particularly affecting smaller and family-run businesses while accelerating consolidation within the sector.

The authors also warned that consumers may see little benefit, arguing that savings are unlikely to be passed down the supply chain.

With the agreement now set to take effect, farming organisations and political representatives are expected to continue pressing for safeguards, or a full reversal, as scrutiny of its long-term impact intensifies.