Brazilian and European negotiators met this week for a new round of discussions on the trade agreement between Mercosur and the European Union (EU). The plan is to finalize the agreement in time for the Mercosur Summit in Uruguay on December 6.
The deal faces opposition from countries such as France and Poland, which argue that it would allow large quantities of imported products into the EU market without being subject to the same regulations as EU producers.
Protests against the agreement have recently triggered tensions between Brazil’s agricultural sector and the French retailer Carrefour, after the company’s CEO, Alexandre Bompard, announced that Carrefour supermarkets in France would no longer sell meat from Mercosur countries. Bompard also urged other sectors in France, such as food service, to boycott meat from the South American bloc.
The announcement prompted a response from Brazilian meatpacking companies, which suspended deliveries to Carrefour stores in Brazil. The measure also drew sharp criticism from the Brazilian government and industry associations.
The international impasse led to discussions between representatives of the Brazilian and French governments, culminating in an apology letter from Bompard to the Brazilian minister.
“We know that Brazilian agriculture provides high-quality meat, respecting standards and offering excellent taste. If Carrefour France’s communication caused confusion or was interpreted as questioning our partnership with Brazilian agriculture, we apologize,” the letter said.
However, the letter also stated that Carrefour France would continue sourcing meat from French producers, with no mention of resuming purchases from Mercosur countries.
Negotiations
The Brazilian government is pushing for the agreement’s conclusion, supported by EU President Ursula von der Leyen and European Council President António Costa, Portugal’s former prime minister.
A source in Brazil’s diplomatic corps told Valor Econômico newspaper that opposition from countries like France would not derail the agreement. Under EU rules, trade deals can be approved by a majority vote in the European Parliament and the European Council, both led by allies of Brazilian President Lula—Ursula von der Leyen and António Costa. Political discussions in individual national parliaments will run parallel to these votes without interfering.
Under the agreement, the EU would allow the gradual import of 99,000 tons of beef over five years, including 55% high-quality fresh beef and 45% frozen beef, with a 7.5% tax (down from the current 20%).
The agreement would also permit duty-free imports of 180,000 tons of poultry annually from Mercosur countries. This represents 1.4% of the EU’s total projected poultry consumption of 12.6 million tons in 2024, according to EU data.
A study published by the Brazilian Institute for Applied Economic Research (Ipea) in December last year suggested the agreement could boost Brazil’s GDP by 0.46% between 2024 and 2040, equivalent to USD 9.3 billion in constant 2023 dollars. Among participating countries, Brazil stands to gain more than the EU and other Mercosur nations.