With the undemocratic splitting of the EU-Mercosur deal, Europe is missing the chance to lead on fair trade

The European Commission hopes that the “splitting” procedure will lead to a faster conclusion of the trade deal, partly because the Dutch government has not yet formally opposed the agreement. However, the Dutch parliament has done so multiple times since 2020, most recently in 2025. It would therefore go against the explicit wishes of our House of Representatives if the (caretaker!) government signs off in Brussels. Moreover, “splitting” undermines democratic oversight: the trade part could take effect immediately, while safeguards for human rights and sustainability are postponed. More than 200 Members of the European Parliament and national parliamentarians have already warned that democratic scrutiny of the full agreement is non-negotiable. Splitting may be fast, but it undermines the rules and weakens the agreement.

The trade part lacks enforceable sustainability commitments, while lower tariffs are likely to trigger increased imports of beef and soy. The so-called “rebalancing” clause could also be used to challenge European green regulations if they are seen as trade barriers. In this way, the agreement could weaken the implementation and enforcement of the EU Deforestation Regulation (EUDR), exactly what a previous legal analysis by civil society organizations warned against. The result: more pressure on forests in the Amazon and Cerrado and less policy space for the EU to prevent it.

The South American organizations we work with see these effects every day: expansion of livestock and soy cultivation displaces small-scale farmers and increases pressure on indigenous lands. An agreement that prioritizes the trade part and sidelines social and ecological safeguards only strengthens this dynamic and harms small-scale farmers there.

Moreover, the economic benefits of the agreement are minimal; contrary to what proponents claim. As recently as July, a report commissioned by the Ministry of Foreign Affairs showed that the trade agreement with the Mercosur countries would increase the Dutch GDP by only 0.02%. At the same time, the agricultural sector is the big loser of the EU-Mercosur deal. Income losses for various Dutch agricultural sectors run into millions, according to research by Wageningen Social & Economic Research. This means that the EU-Mercosur agreement will place an even greater economic burden on a farming sector that is already undergoing a difficult but necessary transition due to climate change and the nitrogen crisis. Farmers who want to make this transition will be hit by a “race to the bottom” reinforced by this trade agreement.

There is no doubt: ratification of the EU-Mercosur agreement will be harmful for well-intentioned farmers here and there, for the climate, and for the democratic legitimacy of European decision-making. The Netherlands can show leadership by voting against it in the European Council and demanding that the entire agreement be considered at once, not split. With strong, enforceable commitments against deforestation, for human rights, and for equal import standards.

The world is unstable, with tariff wars and pressure from China. That is why Europe must present itself as a reliable partner. By splitting the agreement, Europe is doing the opposite. We therefore ask Europe and the Dutch government: choose trade that works for everyone. Move away from business as usual toward equal standards, deforestation-free supply chains, and respect for democratic values. In this way, trade can become a force for a fairer world.