Stop the harmful free trade agreement between the European Union and the Mercosur countries

Open letter to

• Mr State Minister Luc Frieden
• Mr Minister of Foreign and European Affairs, Defence, Development Cooperation and ForeignXavier Bettel
• Mr Minister for the Environment, Climate and Biodiversity Serge Wilmes
• Ms Minister for Agriculture, Food and Viticulture Martine Hansen
• To the Members of the European Parliament

In a context where many international cooperation systems are being questioned and institutions – which have nonetheless contributed to a more peaceful world – are being weakened, it is important to continue investing in building connections between countries, people, and economies.
However, this must not be done “at any cost” and by causing negative social, environmental, and economic consequences: accelerated climate change, loss of biodiversity, precariousness, and injustice.

Very limited economic gains    
The free trade agreement between the European Union and the Mercosur countries would bring very limited economic gains according to international experts, while causing considerable negative impacts on both sides of the Atlantic. In the Global South, overproduction from cash crop monocultures (soy, sugarcane, meat, etc.) is expanding, weakening food systems led by family farms and relying on deforestation and massive use of pesticides – much of which are imported from Europe and include substances banned in the EU.

Family farms under pressure   
In Europe too, it is family farms that are being weakened and exposed to the negative consequences of such an agreement. The import of agricultural products treated with banned pesticides or based on genetic technologies poses health risks. In the absence of clear traceability rules, compliance with quality standards cannot be guaranteed to European consumers.

The EU-Mercosur agreement: a new form of colonialism
The EU-Mercosur agreement continues to reinforce a hierarchical logic between countries, with industrial powers (automobile, chemical, etc.) on one side, and countries whose economies rely on agriculture facing increased exploitation of non-renewable natural resources on the other. The agreement deepens inequalities and does not contribute to the development of a more just and sustainable world.

A project at the expense of forests – and particularly the Amazon     
Amid current waves of extreme heat, we wish to stress that the world, and Europe in particular, must exploit all possibilities to fight the climate crisis. Forest protection, especially of the Amazon, must become a global priority. However, this agreement contradicts the EU’s climate commitments: increased deforestation due to rising agricultural trade volumes will lead to higher greenhouse gas emissions.

An affront with terrible consequences for Indigenous Peoples and local communities
The agreement does not provide adequate protection for the rights of Indigenous Peoples and Local Communities (IPLC) and does not shield them from land grabbing and evictions. Instead of the internationally recognized right to “free, prior and informed consent” (FPIC), the EU-Mercosur agreement uses the phrase “prior informed consent” – implying that consent can be obtained through coercion and intimidation – and restricts the already limited scope of protection to forest use, ignoring other lands and ecosystems.

A threat to ecological and consumer protection policies
Finally, the agreed text introduces a new appeal mechanism – the “rebalancing mechanism” – which could undermine the European Regulation against deforestation (EUDR), a range of existing European laws, and even the autonomy of EU and Mercosur legislators to adopt future laws on social and environmental issues. If these laws are perceived to harm the benefits companies expect from the agreement, calls for “compensation” will arise. This could lead to a “regulatory chill,” similar to that of the ISDS system.

Conclusion: No to the EU-Mercosur Agreement!   
After more than twenty years of negotiations, this agreement now appears out of step with the challenges of the 21st century. Unlikely to be ratified in its current form due to the many issues outlined above, there are now attempts to push it through “at all costs” by splitting the agreement.
By bypassing the parliaments of Member States and seeking ratification by the European Parliament only, this approach seriously undermines fundamental democratic principles – risking further fuelling of extreme political forces and discrediting European institutions.
In the past, the agreement was strongly contested due to former Brazilian President Bolsonaro’s policies. At the time, Europe refused to negotiate with states whose policies were incompatible with those of the European Union. Current geopolitical considerations cannot justify abandoning this stance, especially in light of controversial figures such as Argentine President Milei and his questionable orientations.

In view of all these considerations, Mr State Minister, Mr Minister of Foreign Affairs, Mr Minister for the Environment, Ms Minister of Agriculture, we kindly ask you to maintain a strong position in favour of quality and health standards, family farms, and sustainable and fair development – by opposing this agreement and the “splitting” strategy for its ratification.

Yours respectfully, Mr State Minister, Mr Minister of Foreign Affairs, Mr Minister for the Environment, Ms Minister of Agriculture, Members of the Parliament.

Luxembourg, 9 July 2025

Action Solidarité Tiers Monde (ASTM)
Political Forum of the Cercle de Coopération of Luxembourg NGOs
Greenpeace Luxembourg
Mouvement Ecologique

Click here to view the lecture ‘The fatal consequences of an EU-MERCOSUR agreement’ by Prof. Dr. Antônio Inácio Andrioli