• EU countries have provisionally approved a trade agreement with Mercosur after 25 years of negotiations.
• The deal is expected to create the world's largest free trade zone, benefiting over 700 million consumers.
• Concerns from EU farmers about increased competition and import standards have led to protests across several member states.

On January 9, 2026, EU nations provisionally approved the signing of the bloc's largest free trade agreement with the Mercosur group, which includes Argentina, Brazil, Paraguay, and Uruguay. This landmark deal comes after over 25 years of negotiations, with key member states like Germany and Spain supporting it as essential for opening new markets to offset losses from U.S. tariffs and decreasing reliance on China for critical minerals, according to Reuters and Al Jazeera.

The anticipated trade agreement allows for the removal of tariffs on 91% of imports from Europe over 15 years, benefiting industries such as automobiles and wine, while the EU will phase out tariffs on 92% of exports from Mercosur products. The total expected boost is a significant increase in mutual trade, valued at approximately €111 billion ($129 billion) for 2024, highlighting the deal's economic potential, according to South China Morning Post and Le Monde.

Despite the projected economic benefits, the agreement faces substantial opposition from agricultural sectors in the EU, particularly from France, Poland, Hungary, and Austria. Critics warn that it could result in increased imports of cheaper agricultural products like beef and poultry, undercutting domestic farmers and potentially harming EU food safety standards. Protests have erupted across France and Belgium, where farmers are expressing their concerns, according to Reuters and Al Jazeera.

The European Commission has introduced various safeguards in an attempt to alleviate concerns, including enhanced monitoring of import conditions and protective measures to suspend imports if necessary. These concessions, however, have not convinced all member states, with Italy needing certain reassurances to shift its position. The vote's outcome illustrates a divided sentiment within the EU, further complicating the future of the trade agreement, according to South China Morning Post and Le Monde.