Agricultural safeguards approved in the EU expose challenges in Mercosur deal

After decades of negotiations, the trade agreement between the European Union (EU) and Mercosur is moving forward, but the approval of agricultural safeguards has raised an alarm for Brazilian meat exporters. The measure allows the European bloc to reimpose tariffs if there is an increase in imports considered abrupt. 

In practice, it is a containment mechanism aimed at products classified as “sensitive”. Among them, beef and poultry. The instrument signals that the agreement does not eliminate the protectionist logic, it merely reorganizes it within formal criteria, as explained in a report by Estadão. Before producing practical effects, the regulation needs the approval of the European Council and formal publication in the Official Journal of the EU, becoming effective only when the interim agreement with Mercosur is implemented, according to information published by CNN. 

The European Union ambassador to Brazil, Marian Schuegraf, communicated the approval of the additional safeguards to Brazilian deputies and senators of the Mercosur Parliament (Parlasul). They, in turn, interpreted the gesture as a positive sign and indicative of reduced tension with the European Parliament. For the Confederation of Agriculture and Livestock of Brazil (CNA), however, the mechanism introduces an automatic criterion that could restrict Brazilian exports with reduced tariffs. The entity says the initiative would not be aligned with the World Trade Organization (WTO) guidelines.

The estimated impact

The CNA assesses that, without institutional adjustments and coordination by the Brazilian government, a significant portion of the negotiated benefits could be diluted in the first years of the agreement’s validity, according to Globo. Commercial intelligence simulations conducted by the CNA suggest that the safeguards and ancillary requirements could erode the competitiveness gains foreseen in the agreement. The projected loss estimate for the beef sector is 105 million euros, only in the first year of the treaty’s validity. The amount represents about 25% of Brazilian exports destined for the European Union in 2024, sizing the potential effect on the country’s competitiveness in the bloc.

In 2024, according to IBGE, Brazil’s cattle herd reached 238.6 million head, consolidating the country as owner of the world’s largest commercial herd. The volume is about three times higher than that of the European Union, highlighting the structural difference in production scale between the blocs.

According to official government data, in 2025 Brazil also surpassed the United States, taking the global leadership in beef production. The progress in the last year came after the country exceeded initial market projections. Beef reached revenues of US$18.03 billion, up 40.1%, and a 20.9% increase in export volume, according to official data compiled by the Brazilian Association of Meat Exporting Industries (ABIEC). 

In the Federal Government’s assessment, the agreement represents a strategic opportunity for Brazilian agribusiness. The MDIC Secretary of Foreign Trade, Tatiana Prazeres, stated that the treaty expands access to a high-consumption market and can strengthen the international insertion of national production. According to her, preferential access to the European Union tends to reinforce the sector’s competitiveness and generate positive effects in global value chains.

See how Brazil and the European Union compare in production scale:

European concerns behind the safeguards

The inclusion of agricultural safeguards in the agreement reflects recurring concerns of European producers ahead of trade opening with Mercosur. One of the fears is the difference in production costs between the blocs, since South American countries generally operate with greater land availability, favorable climate and broader production scale, and regulatory differences. This ends up being reflected in lower prices for products imported by the bloc compared with those produced locally, which leads to a loss of competitiveness for the European agricultural sector, according to an article in Exame.

Agricultural sector organizations in Europe, such as Copa-Cogeca — which represents cooperatives and farmers in the European Union, many of them structured on small and medium-sized farms — allege the same. According to the entity, European environmental, sanitary and animal welfare standards are far more stringent. In this context, part of the European agricultural sector advocates safeguard mechanisms to avoid what they call “asymmetric competition”, should imported products be produced under different rules, a subject debated during the agreement’s consideration in the European Parliament.

The European Commission itself says the safeguard mechanism operates as a “safety net” for farmers in the bloc in the event of an unexpected rise in agricultural imports after the agreement’s implementation, allowing the temporary reintroduction of tariffs when there is a risk of significant disruption to the internal market.

Between European protection and Brazilian adaptation

The sector also expresses concern about the increase in environmental requirements, which, combined with agricultural safeguards, may increase legal uncertainty. In light of this scenario, the CNA argues that Brazil should advance in:

• Updating trade defense instruments, to respond to potential distortions;
  
• Regulating bilateral safeguards, with clear application criteria;
  
• Structuring countermeasures, capable of preserving the treaty’s economic value.
  

According to the entity, without this set of actions, the tariff liberalization negotiated with the European Union may not translate into effective access to the European market.

At the same time, for experts, the requirements of the European regulation in the EU-Mercosur agreement represent a relevant challenge and an opportunity. Although they imply costs and adjustments in the short term, they can drive the modernization of the sector and strengthen Brazil’s reputation as a reliable supplier of sustainable products, expanding opportunities not only in Europe but in other markets increasingly attentive to environmental and governance criteria.

Sources:     

• Agricultural production – livestock and meat
• Brazilian agribusiness closes 2025 with record exports of US$169 billion and a surplus of US$149.07 billion
• Beef Report 2024 | Brazilian Beef Profile
• Brazil surpasses the US as the largest beef producer
• CNA: Requirements and safeguards may limit gains of the Mercosur–EU agreement
• EU-Mercosur Agreement betrays European farmers, workers, consumers and the environment
• Key elements of the EU-Mercosur trade agreement*
• Mercosur – EU trade relations with Mercosur. Facts, figures and latest developments.
• Mercosur-EU: European Parliament approves agricultural safeguards
• Mercosur-EU: European Parliament approves agricultural safeguards with 5% triggers
• EU Parliament approves safeguards to protect European agriculture in agreement with Mercosur
• PPM – Municipal Livestock Production Survey
• Environmental safeguards and the Mercosur–European Union free trade agreement