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Blog / 17 juli 2025

A disaster for farmers: here and there

The trade agreement with South America is harmful to farmers, the climate, and biodiversity, on both sides of the Atlantic. It’s time to take this deal off the table once and for all, argues Fernando Hernandez, Senior Policy Officer for Trade and Investment at Both ENDS.

This blog was originally published in Dutch by Vice Versa.

New trade agreements with South American countries, specifically the so-called EU-Mercosur trade deal, are a disaster for farmers. Not only in the Netherlands, but also for farmers in South America. At Both ENDS, we work daily with partner organizations in the region who see firsthand how such trade deals suffocate farming communities and block sustainable transitions in the agricultural sector. That’s why the Netherlands must vote against this deal in the European Council this summer.

The EU has been working for years on a trade agreement with the Mercosur countries (a South American trade bloc including Brazil, Argentina, Uruguay, and Paraguay). In January, the draft deal was brought before the Dutch Parliament for the sixth time. The Parliament then requested a scientific analysis of the agreement’s pros and cons. Wageningen University recently published this analysis, which confirmed the Parliament’s concerns: the deal offers almost no economic benefit (a mere 0.02% GDP increase) and poses serious risks to farmers, the climate, water resources, and the future of agriculture.

The deal is especially harmful to Dutch farmers pursuing sustainable practices. This comes at a time when Dutch agriculture is undergoing a complex transition, driven by climate goals, nitrogen reduction, and shifting consumer and regulatory demands. Instead of supporting this transition, the EU-Mercosur deal increases economic pressure. It includes no guarantees to protect Dutch producers from unfair competition, no requirements for equal standards for imports, and no provisions to support affected farmers.

Concerns in South America are equally severe. Our partner organizations already witness how cattle ranching and soybean cultivation for the European market drive deforestation, especially in Brazil. This threatens biodiversity, undermines small-scale farmers, and displaces Indigenous communities. The EU-Mercosur deal will only worsen these issues. Previous analyses confirm that the sustainability chapter lacks enforceable obligations, while lower import tariffs are likely to accelerate deforestation due to livestock and soy production. In essence, the deal is a green light for forest clearing, chemical use, and human exploitation, without any effective European leverage.

At a time of climate and biodiversity crises, rising conflicts, and trade tensions, this deal offers no solutions. On the contrary, it’s old wine in new bottles. The Netherlands, and Europe, should rethink trade altogether: toward fairer and more sustainable models that reward those leading in sustainable and ethical innovation, and that protect people and the planet instead of exploiting them.

The Dutch Parliament understands this and has rejected the agreement six times since 2020, most recently on April 22 of this year. Yet the Dutch government has still not taken a final position. This summer will be the moment of truth when the caretaker government must take a stance in Brussels. A caretaker cabinet, especially, should not go against repeated parliamentary majorities. A clear rejection of this deal, one that is incompatible with forward-looking agricultural and climate policy, is the only sustainable choice.

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