EU-Mercosur deal faces uncertain future

Significance The agreement, which promises to remove over 90% of tariffs on goods traded between both blocs, builds on an agreement reached five years ago. In particular, it includes amendments on the environment, critical minerals and automobiles. Given the structure of the FTA, it will require approval in national parliaments. Impacts EU farmer protests against the deal are likely to resurface during the ratification process. Industrial leaders and right-wing politicians will probably renew efforts next year to postpone the EU Deforestation Regulation. The agreement risks fuelling anti-EU sentiment in France.