Ursula von der Leyen, the president of the European Commission, is set to sign the EU-Mercosur Partnership Agreement this weekend. This comes amidst protests from thousands of farmers across Europe. Recently, EU leaders approved the free-trade deal, which has been in the works for 25 years. Von der Leyen highlighted that the agreement aims to create new business opportunities and improve access to vital raw materials for European companies.
Once both the European Parliament and Mercosur nations ratify the deal, it will significantly open up trade between Europe and South America, covering almost all goods. This includes cars and machinery from Europe and agricultural products from South America, like rare earth metals which are essential for technology.
However, the excitement is overshadowed by environmental concerns. Audrey Changoe, a trade policy expert at Climate Action Network Europe, warns that this deal could worsen deforestation in South America, contradicting the EU’s climate goals. Increased trade in beef, poultry, and soy, she argues, could harm critical habitats and contribute to higher carbon emissions.
Interestingly, a recent report revealed that Brazil’s deforestation rates in the Amazon hit an 11-year low, but the World Resources Institute noted that the country still faces significant challenges. In fact, Brazil accounted for nearly half of the world’s tropical forest loss in 2024, driven by agriculture and illegal logging.
The deal also raises concerns about how it could weaken environmental regulations. Patrizia Heidegger from the European Environmental Bureau points out that existing pressures could push Europe toward lower standards to remain competitive with South American businesses that don’t have the same environmental constraints.
Despite these worries, some experts believe the agreement could encourage a shift toward sustainable practices in South America. Argentina and Uruguay have already started moving toward circular economies, which focus on sustainability in agriculture and forestry.
In summary, while the EU-Mercosur deal promises economic benefits, it also poses significant environmental risks. The balance between trade and sustainability remains a pressing issue as the agreement moves forward.
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