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EU-Mercosur trade deal advances despite fierce opposition from farmers and retailers

Europe’s farmers fear ruin as the EU-Mercosur deal nears approval. Austrian retailers vow to boycott South American meat—will others follow?

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The image shows an open book with a map of the Austrian possessions in the Netherlands and Low...
The image shows an open book with a map of the Austrian possessions in the Netherlands and Low Countries. The map is detailed and shows the various countries and regions of the region. The text on the book provides further information about the possessions.

EU-Mercosur trade deal advances despite fierce opposition from farmers and retailers

The EU-Mercosur trade deal has moved a step closer to reality after EU ambassadors approved it by majority vote on Friday. However, strong opposition remains, with France, Poland, and Austria refusing to back the agreement. Critics warn that the deal could flood European markets with cheap fresh imports, threatening local farmers and sparking protests across the continent.

The agreement still needs final approval from the European Parliament before it can take effect. EU Commission President Ursula von der Leyen is set to formally sign the deal in Paraguay on Saturday, marking a key milestone in its implementation.

Opposition to the trade deal has been vocal. Before the vote, France, Poland, Austria, Ireland, and Hungary all opposed its adoption, while Belgium abstained. Italy initially resisted but later changed its stance to support the agreement. Meanwhile, major Austrian grocery chains have already ruled out stocking South American fresh meat. Lidl Austria confirmed it will continue prioritising domestic suppliers for fresh meat. Similarly, Spar’s board member Markus Kaser stated that all beef, pork, and veal sold in their stores comes exclusively from Austria, with no plans to change this policy. Billa, owned by Rewe, also maintains a strict focus on Austrian fresh meat, including chicken, turkey, pork, beef, veal, game, and lamb. Its sister chains, Adeg and Penny, have followed suit, rejecting Mercosur imports. Hofer, another leading retailer, has made the same commitment, ensuring no South American fresh meat will appear on its shelves. Protests have broken out across the EU, with farmers and agricultural groups fearing the deal will undercut their livelihoods by allowing cheaper fresh imports to dominate the market.

The EU-Mercosur trade deal now awaits the European Parliament’s decision before it can be fully enacted. Austrian supermarkets have already taken a firm stance, refusing to stock fresh meat from Mercosur countries. The agreement’s future impact on European agriculture will depend on how markets and retailers respond once it comes into force.

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