EU-Mercosur free trade agreement: opportunity or threat for France?

Summary Negotiations between the European Union and the member countries of Mercosur, which began in 1999, were concluded on December 6, 2024. The implementation of the treaty now depends on the ratification by a qualified majority of EU member states and the approval of the European Parliament. This free trade agreement aims to eliminate most customs duties between the two economic blocs. The European Commission has estimated that European exporters could gain €4 billion per year as a result of the reduction in tariffs. According to several studies, the agreement is expected to benefit both European Union (including France) and Mercosur countries. The free trade agreement would enhance the specializations of both economic blocs, favoring agriculture for Mercosur and industry for the European Union. Consequently, it would primarily benefit countries with a rather big manufacturing sector , such as Germany, as well as specific industrial sectors of the French economy, including pharmaceuticals and automotive manufacturing.