On a Saturday morning in January, the small Irish town of Athlone filled with the rumble of tractors. Thousands of farmers stood in the cold to protest a trade deal that had not yet taken effect. Across the Channel, French farmers were blocking traffic to ports and occupying fuel depots.
On May 1, 2026, the EU-Mercosur trade agreement entered provisional application after more than 25 years of negotiations. The European Union and South America's four countries, Brazil, Argentina, Paraguay, and Uruguay, opened one of the world's largest free-trade zones. The deal covers 720 million people and roughly 30% of global GDP.
European exporters can now sell cars, wine, cheese, and chocolate to South America with lower tariffs. In return, South American beef, poultry, sugar, and rice face lower barriers entering Europe. Forecasts suggest trade could increase by more than 10% by 2038.
European Commission President Ursula von der Leyen called this good news for businesses and consumers. However, farmers strongly disagreed. The deal allows 99,000 tonnes of cheaper South American beef into the EU at just 7.5% duty, compared with the standard 40 to 45% tariff. Irish and French farmers argued that low-cost beef would hurt European producers who follow stricter environmental and animal-welfare rules.
Von der Leyen used provisional application instead of waiting for a full parliamentary vote. In January, the European Parliament referred the agreement to the EU Court of Justice for review. If judges decide the Commission overstepped its powers, the deal could be stopped. Meanwhile, Brazilian President Luiz Inácio Lula da Silva celebrated the launch as a victory for multilateralism.