New report: EU-Mercosur trade agreement a disaster for people and the environment

SOMO and Both ENDS strongly condemn the newly revealed investor-state dispute settlement (ISDS) case filed by Petrogas, an Omani oil and gas company operating two shallow-water gas fields in the Dutch North Sea, against the Netherlands under the Netherlands-Oman bilateral investment treaty (BIT).

Recently, many newspapers have written about Brussels’ rush to finalize the trade agreement between the EU and the South American Mercosur countries. According to the European Commission, national parliaments do not need to approve it because the trade part and the “political” part have been separated. This “splitting” means that the trade part can be approved as an EU-only decision by the European Council and the European Parliament, while national parliaments are sidelined and the political-cooperation part is postponed. Both ENDS and its partners are deeply concerned and are calling on the Dutch government to vote against this outdated agreement.

On September 23th the European Union and Indonesia concluded their negotiations of the EU-Indonesia Comprehensive Economic Partnership Agreement (CEPA), a free trade agreement between the EU and Indonesia. Both ENDS condemns this agreement for favoring corporate interests over those of local communities and the environment.

A recent report by Wageningen Economic Research (WER) on the economic consequences of the trade agreement between the EU and Mercosur confirms what civil society organizations, policymakers, and trade unions have been signaling for years: this agreement does not offer a balanced perspective for farmers and the environment. Instead, it increases power inequalities and shifts burdens onto (small-scale) farmers. Moreover, the deal risks reinforcing unsustainable practices that complicate the climate transition and addressing environmental challenges in both the EU and Mercosur countries.

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.

Since President Trump's trade war and tariffs, international trade has once again been thrust into the spotlight. In Europe and the Netherlands, there are growing calls for new free trade agreements to be concluded as quickly as possible, as reflected in recent opinions in FD and de Volkskrant. But that is the wrong reflex, writes our colleague Marius Troost.

Brussels, 18 February 2025 - Over 120 civil society organizations and trade unions from Indonesia and Europe today call on the Indonesian government and the European Union to stop the negotiations for the Indonesia-EU free trade agreement – the Comprehensive Economic Partnership Agreement (CEPA). 

On December 6, the visit of European Commission President Ursula von der Leyen to the Mercosur Summit sealed the agreement on the final text of the EU-Mercosur Association Agreement. Both ENDS condemns this damaging agreement for undermining human rights, the environment, and democracy in Europe, and in Mercosur countries. Should the agreement be ratified as it stands, it will have devastating consequences for the environment, indigenous communities, family farming and small-scale farmers on both sides of the Atlantic.

The government of Kenya has officially terminated its bilateral investment treaty (BIT) with the Netherlands, marking a significant win for economic justice and environmental protection. Kenya’s decision reflects a growing global trend of rethinking outdated treaties that often prioritize corporate interests over public welfare. The Dutch Minister for Foreign Trade and Development recently confirmed that Kenya unilaterally ended the treaty in December 2023, rendering it inoperative from 11 June 2024. Kenya now joins South Africa, Tanzania, and Burkina Faso as the fourth African country to terminate its BIT with the Netherlands. 

Trade has been in the global spotlight once again in recent times. Recently, ministers from around the world gathered in Abu Dhabi at the WTO for negotiations on world trade in the coming years. However, participants from civil society were silenced. Never before has their freedom been so severely restricted at the WTO. In a time when geopolitical tensions are escalating by the day, it is crucial to prioritize equality in international trade. 

On 17 and 18 July, representatives of the governments of Latin America, the Caribbean and the European Union meet in Brussels for the EU-CELAC summit. The European Commission and several EU Member States want to use this moment to accelerate the ratification of the trade and investment treaties between the EU and Mexico, the EU and Chile and the EU and the South American Mercosur countries*.