After more than 25 years of negotiations and an official signing in January, the free trade agreement between the European Union and four countries from the Mercosur bloc in South America came into effect on Friday, May 1, on a “provisional” basis. The procedure announced in February by European Commission President Ursula von der Leyen means that the trade treaty will enter its operational phase even before full ratification, and despite the intense controversy surrounding it.
The agreement with Brazil, Argentina, Paraguay and Uruguay is being presented by Brussels as a major economic and geopolitical tool for the EU. Nevertheless, it faces particularly broad opposition in France, where it has crystallized concerns among the agricultural sector, environmentalists and the entire political class.
French President Emmanuel Macron had denounced von der Leyen’s announcement in Februrary as a “bad surprise,” while French Agriculture Minister Annie Genevard had expressed disappointment over a “very damaging” decision taken “in disregard of the respect owed to the European Parliament’s position.”
What exactly does this trade agreement contain? Why is it facing such strong rejection in France? And could Paris’s stance still affect its implementation? Here are five key points to understand the situation.
What is the agreement about?
This is a free trade treaty that has been under negotiation for more than a quarter of a century between the EU and the Southern Common Market, or Mercosur, a South American trade bloc that includes Brazil, Argentina, Paraguay, Uruguay and Bolivia (though the latter joined the group late and is not participating in the agreement).
The treaty contains several measures designed to facilitate trade between the two regions: the gradual elimination of almost all tariffs, legal protection against the imitation of 344 European products (such as roquefort, comté or champagne) and the creation of new import quotas in Europe, notably for South American beef (99,000 metric tons per year).
The EU hopes to boost exports of European goods – cars, clothing, wines – which currently face high tariffs in Mercosur countries. With 780 million consumers and between €40 billion and €45 billion in annual imports and exports, it could become the largest trade agreement ever signed by the EU, and a way for the bloc to diversify its markets amid ongoing tensions with the United States and China.
Although an agreement was found on June 28, 2019, it was blocked because of hesitations from several countries on both sides of the Atlantic, including France, until it was officially signed in January 2026.
Why is it contested in France?
In France, the EU-Mercosur agreement faces near-universal opposition from all political forces, ranging from the radical left to the far right, as well as from the main agricultural unions.
The criticism centers on the risk of a massive influx of South American products, particularly beef, which is seen as unfair competition for French farmers. Beef produced in Brazil or Argentina is significantly cheaper than European beef, due to lower production costs (land, labor, animal feed) and less stringent health and environmental regulations (the use of pesticides and antibiotics).
These differences in standards have also drawn criticism from environmentalists. They argue that the agreement could increase long-distance trade, raise greenhouse gas emissions, encourage Amazon deforestation and endanger consumer health by allowing products that do not meet European standards to be imported.
What is France’s position?
French President Emmanuel Macron initially supported the agreement when it was concluded in June 2019. At that time, he claimed to have prevented Jair Bolsonaro, then president of Brazil (2019-2023), from pulling out of the Paris climate accord as the far-right leader had threatened to do, on top of securing the inclusion of a clause that would compel Brazil to uphold its climate commitments.
But just a few weeks later, in August 2019, Macron reversed course during the G7 summit in Biarritz. As fires ravaged the Amazon, Macron criticized his Brazilian counterpart’s inaction on climate and biodiversity, and decided to withdraw French support from the EU-Mercosur agreement.
Since then, without rejecting the project outright, France has advocated for renegotiation to include stronger protections for the environment and for European farmers. Paris has specifically demanded the introduction of mirror clauses, which would require identical standards for goods traded between the EU and Mercosur.
The French government has also called for tougher safeguard clauses – a mechanism that allows the Commission to temporarily reinstate tariffs if the trade of certain sensitive products (such as poultry, beef, sugar, ethanol) surges, thus risking market destabilization. France proposed that this clause be triggered if import volumes rose by more than 5% or prices fell by more than 5% compared to a three-year average. In December 2025, member states and the European Parliament ultimately agreed on a less stringent threshold of 8%.
What is the provisional application?
By announcing the “provisional application” of the treaty, the European Commission is invoking a mechanism outlined in Article 218 of the Treaty on the Functioning of the European Union. This provision allows the Council of the EU, on a proposal from the Commission, to decide that an international agreement can take effect even before the completion of its often lengthy ratification process.
In the case of the EU-Mercosur deal, this means that provisions under the EU’s exclusive competence – particularly trade-related aspects, such as the gradual elimination of customs duties – can take effect without awaiting the European Parliament’s final vote or formal ratification by all member states. However, the Parliament must still give its consent; if it rejects the agreement, provisional application would be suspended.
Though controversial amid the heated debate over Mercosur, provisional application is not unprecedented. The EU-Canada trade agreement, CETA, for instance, has been provisionally in force since 2017, owing to reluctance from several countries, including France, to fully ratify it.
Can France refuse to apply this treaty?
France cannot, on its own, block its adoption or refuse to implement it. Trade policy falls under the exclusive authority of the EU. The European Commission negotiates on behalf of the 27 member states, based on a mandate granted in 1999 by the member states, including France.
With provisional application now in force, the trade provisions of the EU-Mercosur agreement will soon take effect, including in France, without waiting for the European Parliament’s final approval. For full ratification, however, the agreement still requires a majority vote by MEPs, where support is far from assured. If rejected, its application will be suspended.
Update on January 13: This article was updated to reflect that the agreement is now scheduled to be signed on January 17.
Update on February 27: This article was updated following the announcement of the provisional application.
Update on May 1: This article was updated following the beginning of the deal’s provisional application.
