EU Policy

Three deals across three key regions : Mercosur, India and Australia.

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While the Commission hailed the Australia agreement as a new geostrategic win, EU farmers continue to express deep discontent stemming from the Mercosur deal.

In practice, the backlash around the agreement with Argentina, Brazil, Paraguay and Uruguay has done little to shift the Commission’s dual approach in its negotiating line. On the one hand, the commission kept making concessions on entry-level or mid-range farm goods such as beef, while on the other hand, it pushed for market access for high value-added exports —like wine, Geographical Indications (GI) and cars— with mixed results.

“The EU has all the assets to be an agri-food power,” Luc Vernet, from the export-focused brussels think tank Farm Europe, told Euronews, adding: “We should develop a broader strategy beyond high value-added products, covering all sectors and all levels of quality, because the European model delivers exceptional quality not just in luxury products.”

Yet the opposition to the Latin America deal — which triggered a legal challenge suspending its ratification — crystallised among EU farmers over fears of unfair competition from meat imports.

The Mercosur agreement granted quotas of 99,000 tonnes of beef per year, 25,000 tonnes of pork and 188,000 tonnes of poultry. Despite conditions added to new quotas in the Australia deal, EU farmers complain of imports piling up across successive agreements.

Concessions made on beef

Over eight years of talks with Canberra—the world’s second-largest beef exporter—Australia pushed hard for greater access for beef and sheep meat. Tensions intensified in 2023, when negotiations broke down after the EU rejected Australia’s demand for 40,000 tonnes of beef per year, offering no more than 30,000 tonnes instead.

The final deal agreed Tuesday allows 30,600 tonnes of beef annually into the EU. For sheep and goat meat, Brussels accepted a 25,000-tonne duty-free quota, while sugar was limited to 35,000 tonnes of raw cane for refining and rice to 8,500 tonnes a year.

However, perhaps drawing lessons from Mercosur, Brussels imposed multiple conditions on the quotas. Beef imports, which will have to be from grass-fed cattle, will be phased in over 10 years, sheep meat over 7 years, and rice over 5 years. Sugar will also be subject to certification under a private sustainability scheme.

Safeguard clauses, allowing both sides to react to market disruption, will apply for seven years – but are extended for sensitive farm goods : 15 years for beef, 12 for sheep and 10 for rice.

But a farmers’ representative told Euronews there were serious doubts about the effectiveness of the safeguard mechanisms: “Our experience in general with safeguards is that they are extremely difficult to activate because the burden of the proof is on us, farmers.”

The offensive agenda of the Commission

By contrast, agriculture was far less contentious in the India negotiations, where New Delhi itself resisted opening its market due to domestic farm sensitivities, particularly in dairy. EU sensitive products were largely excluded.

But wine featured prominently on Brussels’ offensive agenda, with Indian tariffs cut from 150% to 20% for premium wines and 30% for mid-range products over seven years. Tariffs for cars will also fall from 110% to 10% but under a quota of 250,000 vehicles a year after a decade – by which point Chinese manufacturers have great chances to have strengthened their position.

In negotiations with Australia, the EU again sought greater access for its wine but encountered strong opposition from domestic producers. In the end, the deal protects more than 1,600 EU wine GIs, plus over 50 new ones from 12 member states.

On Prosecco, Australian producers will still be allowed to use the term domestically to designate a grey grape variety, provided it is linked to Australian GI, with Canberra agreeing to stop exporting such wines after 10 years.

The EU also secured protection for 165 agri-food GIs and 231 spirit drink GIs. But it failed to remove Australia’s luxury car tax, securing instead preferential treatment for EU electric vehicles. But Brussels won improved access to critical raw materials – a key EU demand, that may have lead to more concessions on meat.

EU lawmakers on Thursday approved the EU-US trade deal struck in Turnberry, Scotland, in 2025, while attaching a set of conditions to the agreement.

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A broad majority of political groups backed the deal, which cuts EU tariffs on most US industrial goods to zero, with 417 votes in favour, 154 against, and 71 abstentions.

The European Commission and Washington had pushed for the deal’s implementation, but MEPs delayed backing it until last week amid tensions over Greenland and fresh US trade investigations that raised fears Washington could undermine the deal with new tariffs.

Initially criticized by MEPs as unbalanced and defended by the Commission as the best possible outcome, the deal sets US tariffs on EU goods at 15%, while the EU eliminates duties on most US industrial products.

MEPs introduced safeguards to rebalance the pact in the event of future threats from US President Donald Trump or violations by the United States.

“Of course, that’s imbalanced, but if we could improve it, maybe we can live with it,” Socialist German MEP Bernd Lange said ahead of the vote.

The European Parliament will now work with EU member states to find a common position and enable the tariff cuts, with the attached safeguards expected to be the main point of contention.

These include a “sunset clause” under which the deal expires in March 2028 unless both sides agree to extend it. It also includes a “sunrise clause” which would make tariff preferences conditional to the US respecting its Turnberry commitments.

Lawmakers moved to shield the deal from fresh US tariffs after the Supreme Court struck down 2025 US tariffs in February, prompting the White House to impose new duties on EU goods and launch an investigation into alleged unfair trade practices that could lead to further tariffs.

MEPs also linked the tariff cuts on steel and aluminium to equivalent actions by the US.

Published on
24/03/2026 – 1:25 GMT+1

European Commission President Ursula von der Leyen on Tuesday sealed a free-trade agreement with Australian Prime Minister Anthony Albanese, slashing tariffs on most EU goods and farm exports.

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The deal marks another win for Brussels as it races to diversify trade ties and lock in strategic partners amid rising global tensions.

The pact will save the EU €1 billion a year in duties, the Commission said, with exports projected to climb as much as 33% over the next decade.

Agriculture proved a flashpoint, with EU farmers already pushing back against the Mercosur trade agreement and a legal challenge from MEPs threatening ratification.

Tariffs will eventually fall to zero on products including cheese (over three years), wine, some fruit and vegetables, chocolate and processed foods.

On the toughest issues — beef and sheep, which sank talks in 2023 — Australia agreed to quotas of 30,600 and 25,000 tonnes a year, respectively.

A safeguard mechanism will allow the EU to shield sensitive sectors if a surge in Australian imports harms the bloc’s market.

Beyond agriculture, the agreement opens access to Australia’s critical raw materials, including aluminium, lithium and manganese.

Brussels also failed to scrap Australia’s luxury car tax. Instead, 75% of EU electric vehicles will be exempt.

The deal is a geostrategic push

The Commission expects strong export gains in key sectors, including dairy (up to 48%), motor vehicles (52%) and chemicals (20%).

Brussels has prioritized the deal as it builds partnerships in the Indo-Pacific, where China’s influence has become central. A security and defence partnership with Canberra was also announced Tuesday.

“The EU and Australia may be geographically far apart but we couldn’t be closer in terms of how we see the world,” von der Leyen said, adding: “With these dynamic new partnerships on security and defence, as well as trade, we are moving even closer together.”

Since Donald Trump returned to power in 2025, trade agreements have taken on sharper geostrategic weight for the EU as it seeks new markets.

In 2025, Brussels struck deals with Mexico, Switzerland and Indonesia. The Mercosur pact was also signed earlier this year and will be provisionally applied from 1 May despite a European Parliament legal challenge.

More could follow. Talks are ongoing with the Philippines, Thailand, Malaysia, the United Arab Emirates, and countries in Eastern and Southern Africa, von der Leyen told EU ambassadors on 9 March.

Published on
23/03/2026 – 15:14 GMT+1

The European Commission on Monday took final steps to provisionally apply the Mercosur trade deal from 1 May, covering Argentina, Brazil, Paraguay and Uruguay.

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The move uses a special procedure to ensure the deal takes effect despite a judicial review launched by the European Parliament after a pivotal 21 January vote suspended ratification.

“The priority now is turning this EU-Mercosur agreement into concrete outcomes, giving EU exporters the platform they need to seize new opportunities for trade, growth and jobs,” EU Trade Commissioner Maroš Šefčovič said, adding: “Provisional application will allow us to begin delivering on that promise.”

The agreement liberalises trade flows between the EU and Mercosur countries, creating a free-trade area of more than 700 million people.

The Commission signed off on the deal and secured backing from EU member states despite strong opposition from EU farmers, who fear unfair competition from Mercosur imports.

But at the European Parliament, opponents secured a majority to refer the agreement to the Court of Justice of the European Union to assess its legality.

Pressed by supporters including Germany and Spain, which are seeking faster access to new markets amid rising geoeconomic tensions, the Commission opted for provisional application.

To proceed, it had to wait for at least one Mercosur country to ratify and notify the agreement before launching provisional implementation with that country. Argentina, Brazil and Uruguay have done so, while Paraguay ratified the deal last Tuesday and “is expected to send its notification soon,” the Commission said.

On Monday, the Commission sent a “verbal note” to Paraguay, the legal guardian of Mercosur treaties, completing the final procedural step.

“Provisional application ensures the removal of tariffs on certain products as of day one, creating predictable rules for trade and investment,” the Commission said.

“It will create more resilient and reliable supply chains, crucial in particular for the predictable flow of Critical Raw Materials.”

Published on
19/03/2026 – 10:44 GMT+1

The European Parliament’s trade committee agreed Thursday to cut EU tariffs on US goods to zero, as set out under the EU–US agreement struck in July 2025 after multiple delays over tensions with the Trump administration.

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EU Lawmakers had resisted for weeks implementing the deal signed by EU Commission’s President Ursula von der Leyen and US President Donald Trump last summer, following threats over Greenland and fresh tariffs imposed by Washington on EU goods after a pivotal February ruling by the US Supreme Court ruled illegal the 2025 US tariffs.

On Thursday, the committee adopted a legislation by 29 votes in favour, paving the way to eliminate EU duties on most US industrial goods as agreed in the Turnberry deal.

The lopsided agreement, clinched after weeks of trade tensions triggered by the White House’s nationalist trade agenda, imposes 15% US tariffs on EU goods while the bloc agreed to scrap its own duties and ramp up investment in the US.

Negotiation with capitals

Thursday’s vote opens the door to full approval by the European Parliament. However, adoption may slip to April or May as EU lawmakers still need to negotiate implementing legislation with EU member states.

Amendments introduced by MEPs could complicate talks with capitals, including a “sunset” clause that would reinstate EU tariffs after 18 months if the agreement is not renewed, and a so-called “sunrise clause” making tariff cuts conditional on Washington meeting its commitments.

Lawmakers unfroze the deal on Tuesday following US pressure and calls from the European Commission to move ahead.

They had sought clarity after the White House imposed fresh duties following the ruling of US top judges. New investigations into EU goods launched last week by Washington also raised concerns among MEPs, who called for predictability for European businesses.

US officials, meanwhile, have grown increasingly impatient after repeatedly assuring EU counterparts they would stick to the deal, which also spares sectors such as EU aerospace, if the bloc does the same.

“EU tariffs on US goods haven’t changed,” U.S. ambassador to the EU Andrew Puzder said on X on Tuesday, adding: “We understand that the EU must follow its process. But we’re hopeful that, after 6 and a half months, the time has come – and we’ve respectfully requested that – the EU finalize the deal so we can mutually unlock the potential for positive collaboration – for the betterment of our economies and our joint security.”

EU lawmakers in Brussels are worried that the bloc is drifting into the crosshairs of US domestic politics, as the White House launched new trade investigations into EU goods accusing the European Union is “implementing close to zero” of trade commitments.

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Next week could prove decisive for the EU–US trade deal struck last summer.

Washington has stepped up pressure on the EU in recent days to implement the agreement cut last summer cut between the head of the European Commission Ursula von der Leyen and President Donald Trump, tripling tariffs on the EU.

Still, MEPs have kept the implementation process, which also includes investment pledges from the Europeans in the US, frozen, seeking clarity after the Supreme Court of the United States ruled in February that US tariffs imposed in 2025 were illegal.

The fate of the deal remains uncertain after the White House launched new investigations into EU products this week that could lead to tariffs exceeding the 15% ceiling agreed under the pact.

“It is domestic politics and the worst-case scenario has happened: we got involved,” Croatian MEP Željana Zovko, lead negotiator for the European People’s Party, told Euronews.

She added: “We were waiting for the Supreme Court’s decision but now of course this administration will do its utmost to do it its own way.”

In the days following the court’s ruling, the US administration has looked for new legal grounds for tariffs and invoked Section 122 to impose fresh duties of 10% on EU goods, on top of the 4.8% tariffs already in place under most-favored nation regime.

The provision allows temporary duties for a maximum of 150 days, after which the US Congress would need to agree an extension. The Supreme Court suggested in its initial ruling that the President had exceeded his powers under emergency grounds.

As Washington looks for a way to make the tariff salvo permanent, it is also increasing the pressure on allies by opening new investigations into trading partners including the EU over alleged unfair trade practices. China and India were also targeted.

The probes could pave the way for tariffs above the 15% ceiling agreed in the deal struck in July 2025 by Ursula von der Leyen and Donald Trump in Turnberry, Scotland.

Next week will be pivotal for the EU-US deal

“Now uncertainty is increasing even more for our businesses,” Zovko said.

Since the court ruling, the EU has sought clarity from Washington on whether the Turnberry agreement signed last year still stands or has been broken.

US officials assured EU trade chief Maroš Šefčovič they would stick to the deal, though they have not detailed how the 10% tariffs after the court ruling will be replaced in the long-term. In return, the US expects the EU to implement the agreement fully and quickly.

US Trade Representative Jamieson Greer raised the temperature on Wednesday, lashing at the Europeans on the basis that “the EU has done approximately zero percent of what they were supposed to do for their trade deal with us.”

This week’s investigations should be taken seriously, German MEP Bernd Lange (S&D) told Euronews, despite the erratic moves by the US administration since the court ruling.

“Section 301 will allow the US to differentiate between countries and therefore add pressure to each of them,” he said.

Next week could be pivotal for the EU–US trade deal.

Italian MEP Brando Benifei (S&D) will travel to Washington hoping to meet Greer. He may be joined by Lange, the chair of the EU trade committee, on Monday although a decision has not been made yet.

The trip comes as negotiators in the European Parliament must decide whether to resume work on the agreement or postpone the vote once more. A vote is required to cut EU duties on US goods to zero, as foreseen in the Turnberry deal.

But political groups remain divided.

“When I read what the socialists are saying, I’m losing hope that we will have a vote, despite reassurance given by Iratxe García Pérez [Spanish MEP, chair of the S&D] and Bernd Lange,” a source at the EPP told Euronews.

Benifei said the EU needs a clear political signal from Washington that it will stick to the deal, otherwise “there is no way we can vote on the file.”