What is Mercosur, the economic alliance of South American countries that worries French farmers?

French farmers fear a free trade treaty between Europe and Mercosur. Franceinfo explains to you what this alliance of South American countries is.

Gabriel Attal announced several measures in favor of agriculture on Wednesday February 21. On this occasion, the Prime Minister reiterated his opposition to the free trade treaty with Mercosur. Franceinfo explains to you what this alliance of South American countries is.

“Mercosur” is the abbreviation of the Spanish term “Mercado comun del Sur”. It’s the “common market” from South America. It is the economic alliance of five countries in this region: Brazil, Argentina, Paraguay, Uruguay and recently Bolivia.

Like European countries, these five states have created a free trade zone by removing their borders and customs duties. They have a common commercial policy towards external countries. Mercosur members coordinate their economic, agricultural and industrial policies. Around these five states, there are countries “associates” : Chile, Colombia, Ecuador, Guyana, Peru and Suriname.

The 4th economic bloc on the planet

We can say that Mercosur is a heavyweight: a market of nearly 300 million people. The five member countries alone represent 80% of South America’s GDP. On the international level, Mercosur is the 4th economic bloc on the planet, behind the alliance of Asian countries – notably with China and Japan, behind Nafta – United States, Canada, Mexico – and the European Union.

Within Mercosur, there is a “giant”, it is Brazil, which produces three quarters of the wealth of this group each year. Brasil “agricultural giant” : the world’s leading producer and exporter of soya, sugar and coffee. Leading global supplier of beef, chicken and corn. Brazil, which has relied heavily on transgenic crops and pesticides, of which it is the largest consumer in the world.

The concern of French farmers

The treaty between Europe and Mercosur worries French farmers, due to the imbalance in the way of cultivating land or raising livestock. In Mercosur, environmental requirements, on a social level, have nothing to do with those of France. So, for French farmers, the free trade treaty, if ratified, will create unfair competition from South American countries for their production.

On the other hand, this treaty is not just agricultural: it should allow the European Union to export industrial products (automobiles, chemicals, pharmaceuticals) and services more easily to Mercosur. This is why this treaty is often presented as the agreement “meat versus cars.”