Overview

• The European Commission will present the EU–Mercosur texts on Wednesday, alongside the updated EU–Mexico agreement.
• Two senior Mercosur diplomats told POLITICO the Commission signaled an EU‑side safeguard package and a plan to split trade and political chapters to speed approval without reopening talks.
• Under the deal, Mercosur would remove duties on 91% of EU exports and the EU would scrap tariffs on 92% of Mercosur goods over up to 10 years, with quotas for sensitive farm products including an extra 99,000 tonnes of beef and a 30,000‑tonne duty‑free cheese quota.
• Supporters in Brussels, Germany and Spain say the pact diversifies trade in response to U.S. tariffs under President Donald Trump and reduces reliance on China for critical minerals such as lithium.
• Farm groups and green NGOs oppose the accord over standards and deforestation concerns, and the deal could be blocked if Poland and Italy join France, given it needs Parliament consent and backing from at least 15 member states representing 65% of the EU population.