The Brazilian multinational JBS, the world's leading producer of animal proteins, is ready to use the trade agreement to increase its presence in Europe, which accounted for around 7% of its exports in 2024.
Tens of thousands of Spanish farmers protested in Madrid, expressing their rejection of the EU-Mercosur trade agreement, which they say creates unfair competition between the two trading blocs.
In the annex to the trade and sustainable development chapter of the EU-Mercosur agreement, several provisions entail fundamental changes in how the EUDR will work in practice.
A preliminary analysis of these new texts indicates that the clauses added at the EU’s request are in no way sufficient to effectively prevent the anticipated health and environmental impacts arising from the implementation of the trade agreement.
This explainer cuts through the political rhetoric and takes a look at what the EU Commission doesn’t want you to know about the EU-Mercosur free trade agreement.
Experts talk about investor-state dispute settlements, which allow fossil fuel companies to bring multi-billion dollar lawsuits against countries that pass green policies.
Key elements include a “rebalancing mechanism” to be deployed in disputes where policy impinges on trade, along with a provision that would allow the trade deal to be suspended if one party is found to have violated the Paris climate accord.
The UK and European Union will begin formal talks on a reset of their relationship next year, as Britain’s Chancellor of the Exchequer Rachel Reeves said she wanted to deepen economic ties with the bloc.