EU – Mercosur agreement and Europe’s balancing act of gains and losses

Dr George Tzogopoulos analyzes the pros and cons of the free trade agreement, explaining how export-driven countries such as Germany stand to benefit from expanded access to Latin American markets, while import-dependent economies will face more intense competition from lower-priced products. He notes that each government weighs up what it gains and what it loses individually and can, where losses occur, seek compensation through the EU budget for the next seven-year cycle, which starts in 2027. He ends by noting that this is a strategy both France and Greece are likely to pursue.