Mercosur will make European farmers more vulnerable to international capital & commodities flows

“Don’t take away my dream of taking over”: Appeal of an aspiring young farmer at a protest in Brussels, 18 December 2025. Photo: Hannes Lorenzen

With the signing of the EU-Mercosur free trade agreement this weekend, a spectre of the past comes back to haunt Europe’s farmers. But there is still a political window to save their future. Op-ed by ARC2020 President Hannes Lorenzen, published in Le Monde on Saturday 17 January 2026.

Brussels has been the scene of violent protests against the EU-Mercosur trade agreement. Young farmers, in particular, unleashed their despair and anger by hurling heavy equipment and tons of potatoes at security forces. Their key message: “STOP Mercosur – Free trade is destroying our future.”

Young farmers’ stomachs are in knots about an uncertain future: growing economic risks, political pressures, and emotional burdens. Their income and capacity to invest depend on subsidies that the EU may no longer provide. Agricultural markets have become unpredictable, and climate change threatens the very existence of their farms.

At the mercy of global trade

The Mercosur agreement holds up a mirror to the decisions of the past, when European agricultural policy was left at the mercy of global trade. The Blair House Agreement between the United States and Europe in 1992 paved the way for multinational agribusinesses to acquire market power on both sides of the Atlantic. Only the biggest farms could play this game; the vast majority were exposed to volatile global food markets and speculation. Mercosur will make European farmers more vulnerable to international capital and commodities flows.

The EU’s Common Agricultural Policy (CAP) was originally designed to provide sufficient and affordable food for Europeans and guarantee a fair income for farmers. Things have turned out differently. Today, there is enough food, but an increasing proportion of it comes from abroad. France was a net exporter of agri-food products for 50 years; as of last year, no longer (with the exception of wines and spirits). Only mega-farms can compete with agriculture in the United States or Latin America. The vast majority of French farms survive, if at all, thanks to EU subsidies that often represent more than 70% of their income.

“Mercosur makes our sugar bitter”: Farmer protests in Brussels, 18 December 2025. Photo: Hannes Lorenzen

Buckling under pressure

Europe was divided over this agreement. France and Poland opposed it to appease farmers groups. Italy opposed it for a time in order to gain concessions. Germany pushed intensely for signing because it has a trade deficit in agricultural products, except for the surplus of meat exported to China, but a significant export surplus in industrial products, which is threatened by US tariffs. Chancellor Merz put maximum pressure on his counterparts to reverse the EU’s ban on combustion engine cars in Europe by 2030. Mercosur will allow German industry to export the cars of the past to Latin America. The agrochemical industry will also benefit. The agreement will allow more pesticides to be exported to South America, even substances whose use is banned in the EU, while food produced using these pesticides will be allowed to be sold in the EU.

The European Commission is congratulating itself for having negotiated protections for European farmers. The agreement’s “safeguard clauses” are a smokescreen. These exemptions have never survived the reality of international trade. The EU is already engaged in a race to the bottom on environmental and social rules for international trade. The corporate sustainability law was recently gutted; the deforestation law has been dismantled; the EU’s climate ambition ebbed at COP 30 in Brazil; the precautionary principle for sales of agrochemicals and “new” GMOs was sacrificed by the European Commission. These clauses are nothing but placebo sedatives. Quotas for beef imports into the EU and compensation for lost income: this is the grim reality of European farmers forced to compete on unfair terms. Free trade of beef from clear-felled tropical forests in exchange for outdated cars and banned chemicals is utter madness.

Now what?

The agreement is signed. Now what? How do we untangle the knot that’s tightening in the stomachs of young farmers and move towards practical solutions? The public debate on environmentally friendly and socially responsible food trade must continue. Certainly, the heads of state and government have approved the Mercosur trade agreement, but Mrs. von der Leyen, President of the European Commission, cannot act as she sees fit. The European Parliament will have to ratify this agreement in March for it to be finally implemented. A group of MEPs, at the instigation of French MPs, is seeking to refer the matter to the European Court of Justice. Indeed, the rollbacks in the agreement in a number of areas –in particular its foreseeable impact on deforestation in the Amazon and, in turn, on global heating– contradict the EU’s other international commitments, especially the 2015 Paris Agreement. Member States can also refer the matter to the European Court, which would suspend the implementation process. Building on the unanimous vote against the free trade agreement in France’s National Assembly, French premier Mr. Lecornu and his government could build a European coalition with Ireland, Poland, and other states that reject a trade policy from another era and jointly refer the matter to the European Court of Justice. The issue goes beyond agriculture; it is now a question of respecting the rule of law and the European Union’s commitments at international level.

Click here to read the French version. 
This article was originally published in French in Le Monde on Saturday 17 January 2026. 

 

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About Hannes Lorenzen 60 Articles

Hannes Lorenzen was senior adviser to the Committee on Agriculture and Rural Development of the European Parliament in Brussels and Strasbourg from 1985 to 2019. Before starting his career in the European institutions, he carried out research, coordination and evaluation work on rural development projects with the Technical Service of the German Government. On the international level Hannes Lorenzen is co-founder of Genetic Resources Action International (www.grain.org) and co-president of the European Rural Development Network Forum Synergies (www.forum-synergies.eu). He is also co-founder of PREPARE, the "Partnership for Rural Europe" network for Central and Eastern European Member States (www.preparenetwork.org), serving as chairman and president until 2016. He co-founded ARC2020 and is its president since 2016. Closer to home, Hannes chairs a local rural development organization on his home island of Pellworm in North Friesland, Germany, which works o organic farming, renewable energy production, soft tourism and nature protection projects in a local dimension.

Hannes Lorenzen a été conseiller auprès de la Commission de l’Agriculture et du Développement Rural du Parlement Européen à Bruxelles et à Strasbourg de 1985 à 2019. Avant d’entamer sa carrière au sein des institutions européennes, il a effectué des travaux de recherche, de coordination et d’évaluation de projets de développement rural au sein du service coopération du gouvernement allemand. Au niveau international, Hannes LORENZEN est co-fondateur de Forum Synergies, réseau européen de développement rural (www.forum-synergies.eu). Il a cofondé ARC2020 et en est le président depuis 2016. Hannes préside aussi une organisation locale de développement rural sur son île natale de PELLWORM, en Allemagne. Cette organisation travaille sur des projets d’agriculture biologique, de production d’énergie renouvelable, de tourisme doux et de protection de la nature à l’échelle locale. Sur l’île il est aussi engagé avec des jeunes agriculteurs dans le développement et la reproduction des semences paysannes en bio et la biodiversité en agriculture. Hannes a toujours vu l’agriCulture française au cœur de l’intégration européenne. L’amour et le respect des français pour leurs paysans et l’appréciation de la “bonne bouffe” ont aussi été une flammèche pour se lancer dans cette nouvelle aventure du projet “La résilience de nos compagnes” de ARC2020. Même si un petit virus empêche Hannes de voyager pour l’instant, il est déjà en route pour rencontrer plein de monde qui bouge pour une transition juste et attirante…