French President Macron leads opposition to EU-Mercosur deal as hopes for G20 breakthrough fade

French President Macron leads opposition to EU-Mercosur deal as hopes for G20 breakthrough fade
Macron's stance comes on the heels of widespread protests by French farmers opposing the EU-Mercosur trade deal. / bne IntelliNews
By Mathew Cohen November 19, 2024

French President Emmanuel Macron has reaffirmed France's opposition to the European Union-Mercosur Free Trade Agreement (FTA) during his meeting with Argentine President Javier Milei at Casa Rosada on November 17.

"I told the Argentine president very sincerely and clearly that today France would not sign this Mercosur treaty as it stands," Macron told reporters before departing for the G20 Summit in Rio de Janeiro.

Macron criticised the deal as "very harmful for Argentina's reindustrialisation" and detrimental to European farmers. "We cannot ask our farmers in Europe to change their practices, to not use certain products and develop quality farming and, at the same time, open our markets to massive imports," he explained.

"We don't always think alike on many issues," Macron said about Milei; however, it appears as if the pair has reached a consensus on this issue. "Milei said he was not satisfied with the deal and the way Mercosur worked," the French president stated.

Macron's stance comes amid widespread protests by French farmers across the country. The Jeunes Agriculteurs and the FNSEA farming unions organised the protests, with both organisations confirming that over 80 demonstrations were staged nationwide. FNSEA warned that protests could extend into mid-December if no compromise is reached.

French farmers are concerned about the deal's impact on their livelihoods. Due to the quotas established by the agreement, farmers fear that an increased volume of cheaper meat may enter the country, particularly since Latin American producers do not have to adhere to strict and costly EU standards.

Reuters noted that the proposed agreement would allow significant agricultural imports from Mercosur countries, including 99,000 metric tonnes of beef over the next five years and 180,000 tonnes of duty-free poultry meat annually. Furthermore, the tariff on the existing quota for 180,000 tonnes of sugar from Brazil used for refining would be removed under the new deal. In addition, Paraguay would be allotted a duty-free quota of 10,000 tonnes.

This mutual opposition to the trade deal between Macron and Milei could be a significant roadblock in EU-Mercosur negotiations. As both countries grapple with agricultural sector concerns and economic reforms, the future of this long-negotiated agreement appears increasingly uncertain, potentially forcing both blocs to return to the drawing board for more acceptable terms as farmers' protests in France intensify.

In an unusual move, Rome aligned itself with Paris as Italy's minister of agriculture on November 18 rejected the Mercosur deal in its current form, citing concerns over labour and environmental standards. Similarly to their French counterparts, Italian farmers' unions fear competition from cheaper South American produce imports.

"We must make sure that Mercosur nations respect the same obligations we impose on our farmers in terms of workers' rights and the environment," Minister Francesco Lollobrigida stated.

In contrast, Germany has long championed the deal and hopes to break the Mercosur stalemate during the ongoing G20 summit in Rio de Janeiro.

"This free-trade agreement would be liberating for the German economy. It's almost impossible to imagine a more difficult situation geopolitically — we have to use this opportunity," Volker Treier, the foreign policy leader of the German Chamber of Commerce and Industry, told DW.

Yet the deal requires unanimous support from EU member states and, despite being under negotiation for 25 years, is unlikely to pass at this stage due to strong French opposition.

 

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