EU Commission spokesperson speaks at press briefing in Brussels

EU Commission spokesperson speaks at press briefing in Brussels

September 02, 2025

The European Commission has submitted the legal texts of the trade agreements with Mercosur and Mexico for approval, marking a significant step forward in the union's global trade strategy. The agreements, which have been in the works for decades, will now undergo a lengthy ratification process involving the Council and the European Parliament.

The Mercosur agreement, which includes Argentina, Brazil, Paraguay, and Uruguay, is the most extensive trade partnership ever concluded by the EU. The deal aims to create the world's largest free trade area, encompassing over 730 million citizens. It includes provisions to reduce tariffs on a wide range of goods, with the potential to increase food exports to Mercosur by 50 percent [1].

The agreement also includes a safeguard mechanism to protect EU agricultural production and includes compensation measures for European farmers. However, the ratification process is expected to be lengthy, with countries like France, Italy, and Poland expressing concerns about the impact on their agricultural sectors [1].

The updated free trade agreement with Mexico follows a similar process. This agreement, which was first signed in 2000, aims to modernize the pact and eliminate prohibitive tariffs on a variety of European goods, including cheese, poultry, pork, pasta, apples, jams, chocolate, and wine [1].

The submission of these agreements comes as part of the EU's broader strategy to strengthen its global partnerships and diversify supply chains, a necessity in the current era of international upheaval. The EU Commission, under the leadership of President Ursula von der Leyen, is also considering a significant overhaul of its executive arm to enhance efficiency and cost-effectiveness [2].

The ratification of these agreements will be crucial for the EU's economic future, as they aim to strengthen its position in the global market and create a more stable and predictable trading environment.

References:
[1] https://www.eunews.it/en/2025/09/03/eu-commission-submits-mercosur-and-mexico-trade-deals-for-adoption-but-ratification-may-be-lengthy/
[2] https://www.politico.eu/article/european-commission-unveil-new-structure-ursula-von-der-leyen/