The decision by EU Commission chief Ursula von der Leyen to jet off to Uruguay to push forward the long-debated EU-Mercosur trade agreement has exacerbated tensions between France and Germany. The highly contentious move, seen as a major gamble early in her second term as European Commission President, has sparked a fierce backlash from France while receiving enthusiastic support from Germany and Spain.
The trip to Uruguay, aimed at securing a breakthrough, has further humiliated French president Emmanuel Macron, whose government collapsed earlier this week in a historic no-confidence vote. France has been a long-standing critic of the deal, leading observers to argue that von der Leyen is taking advantage of the country’s political crisis to advance the deal.
Politico reports that Christophe Grudler, a French Member of the European Parliament aligned with Macron’s camp, remarked, “It really gives the impression of taking advantage of the crisis in France to try and get ahead on her own.” Macron’s diminished influence has left France struggling to rally the blocking minority of EU member states required to veto the agreement. Despite efforts to enlist Italy, Poland, and Austria, the French position appears increasingly isolated.
The trade agreement with Mercosur, a South American bloc comprising Argentina, Brazil, Paraguay, and Uruguay, has been in the works for over two decades. It aims to create the world’s largest free-trade area, covering a market of more than 700 million people.
By eliminating most import taxes, the deal would allow South American countries to export agricultural goods, such as beef, poultry, and soybeans, to Europe with fewer restrictions. In return, European nations would gain easier access to the South American market for products like cars, machinery, and pharmaceuticals.
However, France has led opposition to the deal, warning it could devastate its agricultural sector and erode environmental protections. Macron has repeatedly condemned the agreement, calling it “unacceptable” in its current form. The French government is particularly concerned about the influx of cheaper South American agricultural products produced under less stringent environmental and sanitary standards. Macron’s office has reiterated this position, stating that France would continue to “defend its agricultural sovereignty” against the proposed terms.
Germany, on the other hand, views the agreement as a lifeline for its struggling industrial sector and has strongly supported von der Leyen’s efforts. Isabel Cademartori, a German Social Democrat, celebrated the push, calling it “a really good day for Europe and also for Germany.” German leaders see the deal as an opportunity to open new markets for cars and machinery, bolstering their ailing economy.
Farmers across Europe have expressed outrage, fearing the deal would flood the market with cheap, substandard agricultural imports. French farming unions have warned that the agreement would jeopardise local production, with Austrian and Polish farmers echoing these concerns.
In Poland, farmers recently blockaded the Ukrainian border in protest, threatening further action if the government does not oppose the deal. Meanwhile, environmental groups have criticised the agreement for potentially accelerating deforestation in the Amazon and undermining climate change mitigation efforts.
Von der Leyen has framed the deal as essential for maintaining the EU’s global competitiveness. However, critics warn that forcing the agreement through could deepen divisions within the bloc, with Germany even questioning whether Brussels should continue to handle trade negotiations on behalf of member states.
For Macron, the push for Mercosur is a political and personal blow. His inability to block the deal underscores his weakened position on the European stage, while von der Leyen’s actions have exposed fractures in Franco-German relations. Analysts warn that sidelining France risks fuelling anti-EU sentiment and strengthening national conservative leaders such as Marine Le Pen.
Whether the deal’s economic and geopolitical benefits can outweigh the political cost of alienating France is a question that could shape the future of the European Union.
