Why ratification should be avoided
On September 3, 2025, the European Commission submitted the EU trade agreement with Mercosur (Argentina, Brazil, Paraguay, Uruguay) to the Council of the EU for ratification. However, in its current form, the agreement carries even more risks for the environment and human rights compared to earlier drafts, which were already highly problematic.
For example, a newly introduced rebalancing mechanism compensates compensation claims against new laws such as the EU’s deforestation regulation, even if they do not violate the trade agreement. Together with other setbacks, this mechanism threatens to severely undermine the enforcement of environmental and social standards.
The new study, published jointly by PowerShift, Misereor, and Bread for the World, examines the trade agreement’s impact on climate change, human rights, and the economic development of the Mercosur countries. Due to the serious consequences of the agreed elimination of tariffs and other regulations, it warns against ratifying this outdated agreement.
