France Mercosur Agreement

France will examine the draft agreement in detail during its presentation to ensure that its conditions are effectively met. It will follow the same process as for CETA (add on the issue of biodiversity) to carry out a full, independent and transparent assessment at national level before the agreement is considered by the Council of the European Union. This will enable France to assess the impact of this agreement on the most sensitive agricultural value chains, including beef and sugar, on French overseas territories and on sustainable development. In addition to renewing the commitments made by Mercosur countries under the Paris Agreement, the draft agreement also contains provisions that take into account sustainable forest management and the fight against deforestation. France was one of the countries that asked for these provisions. The evaluation report of the EU-Mercosur agreement, commissioned by the Prime Minister at the end of 2019 and led by Stefan AMBEC, INRAE`s research director and professor at EST, was officially handed over to the Prime Minister. On 28 June 2019, the European Commission and the four Mercosur countries (Argentina, Brazil, Paraguay, Uruguay) reached a political agreement. This paves the way for the signing of an association agreement based on political dialogue, cooperation and trade. This agreement will cover 91% of trade between the two sectors. Particular attention will be paid to the impact of the draft agreement on the sensitive agricultural value chain during the national assessment. The Brazilian government on Tuesday (September 22nd) issued an official communication refuting the findings of a French expert report on environmental risks in mercosur`s trade agreement with the European Union (EU).

The agreement signed last year by the members of both blocs still needs to be approved internally by each of the Member States. The report highlights the negative impact of the agreement on climate, particularly given the increase in beef exports from Mercosur countries. French exports to Mercosur currently account for around 6 billion euros of good services and 3 billion euros of services per year.