EU-Mercosur agreement

In an unprecedented move, a qualified majority of EU member states today approved the controversial trade agreement between the EU and Mercosur. Never before in European trade history has a trade agreement been adopted by the EU Council without the approval of such large countries as France or Poland. This approach is likely to further fuel anti-European sentiment, especially since this is a highly controversial agreement. For 25 years, it has been met with resistance from civil society groups, farmers' associations, and trade unions.

The German network Gerechter Welthandel (Fair World Trade) and its member organizations condemn the disregard for widespread criticism and concern about the agreement's impact on small-scale farming, the health of consumers and producers, workers, nature, and the climate.

Ludwig Essig, coordinator of the network, said:

“By agreeing to this toxic trade agreement, European leaders have chosen to prioritize the interests of large corporations, even if it means jeopardizing the livelihoods of workers and small farms on both sides of the Atlantic, violating the rights of indigenous peoples, poisoning people through the use of pesticides, and destroying nature.”

The vote in the EU Council follows an exceptionally fast and confusing process, in which numerous procedural exceptions were made after the European Commission bypassed national parliaments and the European Parliament. In a decision last night, the Cypriot Presidency also decided not to make provisional application of the trade agreement conditional on a vote in the European Parliament. The approval of the EU Council and ratification in one Mercosur country are therefore sufficient to bring the trade part into force.

Bettina Müller, trade advisor at PowerShift:

"The European Commission is playing a game with China and the US for imperial dominance in global trade, in which neither workers nor consumers have anything to gain. In doing so, it is going so far as to undermine even fundamental democratic principles such as a vote in the European Parliament. And this is in the case of a trade agreement as controversial as the one with Mercosur. This is adding fuel to the fire of Eurosceptics and is unlikely to remain without consequences."

Hanni Gramann, trade expert at Attac, adds:

“The non-transparent way in which this agreement came about poses a serious threat to the democratic participation of the population and even national parliaments in important economic policy decisions. Furthermore, the proposed ‘safeguards’ for agriculture are not sufficient to prevent damage to small farms, which are already under severe pressure due to existing free trade agreements.”

Previous studies have shown that the EU-Mercosur agreement will lead to the loss of 120,000 jobs in Europe, drastically increase greenhouse gas emissions and deforestation, and weaken the rights of indigenous peoples and workers. It cannot be a solution to today's climate crisis, recession, or geopolitical tensions.

Jan Königshausen, Advisor on Indigenous Peoples at the Society for Threatened Peoples:

"By prioritizing market access over human rights, the EU-Mercosur agreement risks worsening the situation of Indigenous Peoples and marginalized communities in South America. It shifts environmental destruction, social conflicts, and violence onto those who have contributed least to these crises, while offering them little protection or say."

For further information, please contact:

Ludwig Essig

Coordinator, Fair World Trade Network

Email: essig@forumue.de

Bettina Müller

Trade and Investment Policy Advisor at PowerShift e.V.

Tel: 0174 4537604

Email: bettina.mueller@power-shift.de

Hanni Gramann

Attac Trade Expert

Tel: 017630608762

Email: hanni.gramann@attac.de

Jan Königshausen

STP Advisor on Indigenous Peoples

Email: j.koenigshausen@gfbv.de