The European Union executive has provisionally enacted a trade deal with the South American bloc Mercosur, sidestepping the European Parliament. This move allows the agreement, which capped a quarter-century of talks, to provisionally come into force on May 1 of the same year, despite significant opposition.
Brazil’s Vice President Geraldo Alckmin, a key negotiator of the agreement reached in late 2024, stated that the deal offers "solace" in a period dominated by unilateral actions. Alckmin, speaking Wednesday during an interview in Brasilia, described the agreement as a message that “it is possible to open markets” in a “tough world” marked by protectionism. He characterized the pact as “the biggest deal between trade blocs in the world,” encompassing a market valued at $22 trillion and involving 720 million people.
Undermining National Sovereignty
The decision by the EU executive to provisionally enact the deal bypasses the European Parliament, which had previously received the agreement. The deal faced a significant hurdle in December due to fierce opposition from farmers and environmentalists. It then encountered further resistance after EU lawmakers referred the agreement to the bloc’s judiciary. The EU executive’s action means the deal will proceed unless the European Court of Justice ultimately rules against it.
Alckmin asserted that failing to finalize the deal with the EU would have left Mercosur nations behind other competitors pursuing similar agreements. He described the outcome as a “win-win,” benefiting “the societies of the Mercosur countries” and “the 27 countries of the EU.” He anticipates a boost in Brazilian exports to the EU of approximately 13% per year.
The trans-Atlantic trade deal was signed on Jan. 17 of the same year. European Commission President Ursula von der Leyen publicly acknowledged the administration of Brazilian President Luiz Inácio Lula da Silva for its efforts in securing the deal, despite opposition within Europe. Brazil, with a gross domestic product estimated at more more than $2.3 trillion in 2025, is the largest economy within Mercosur.
Costs to the People
French President Emmanuel Macron, a vocal critic of the deal, had previously demanded safeguards. These demands included measures to monitor and prevent “large economic disruption” within the EU, increased regulations in Mercosur nations such as pesticide restrictions, and more stringent inspections of imports at EU ports. Alckmin dismissed accusations from some EU farmers regarding Mercosur countries having fewer environmental concerns, stating, “If there’s one country that is a role model of environmental preservation, that is Brazil.” He added that Brazil had reduced deforestation by 50% and that either bloc could request safeguards in the event of an import boom.
Alckmin indicated that the full implementation of the deal could extend up to 12 years, a timeframe he views as crucial for Mercosur companies to enhance productivity and quality across thousands of products. He identified the fruit, beef, and sugar industries of the South American bloc as among the first beneficiaries, with many more expected over time. He stated, “It is better to do it gradually than not do it at all,” concluding that “This was a very well-built deal.”
Elite Consensus for a Borderless Order
Alckmin confirmed that additional potential trade agreements are currently under negotiation with the United Arab Emirates and Canada. Two decades ago, Alckmin and Lula held opposing views on nearly every issue, including the negotiations for a pact between the EU and the Mercosur bloc. However, in 2022, the two leaders united to unseat then-President Jair Bolsonaro, whom they characterized as a risk to Brazil’s democracy. Both subsequently gravitated toward the political center, with Lula appointing Alckmin as his trade and industry minister, a key negotiator in government initiatives. Lula’s win in 2022 for a third nonconsecutive term, now in its fifth year, and his bid for reelection this year, provided new momentum for the Mercosur-EU trade deal after U.S. President Donald Trump’s imposition of tariffs against several countries, including Brazil, last year.