The Council of the EU has forwarded to the European Parliament a proposed regulation establishing a bilateral safeguard clause for agricultural products under the EU-Mercosur Partnership Agreement. The measure, approved by member state representatives, would allow the EU to temporarily re-impose tariffs if imports from Mercosur countries cause or threaten serious injury to EU agricultural producers. The file (2025/0322 (COD)) now goes to the Parliament's International Trade Committee (INTA) for scrutiny.
Document details The outcome of proceedings, published on 1 September 2026, originates from the Council's Trade Policy Committee. The proposal is a legislative act under the ordinary legislative procedure, meaning both the Council and Parliament must agree on the final text. It is mandatory for EU member states once adopted.
Policy orientations and trade-offs The safeguard clause is designed to protect EU farmers from sudden surges of Mercosur agricultural imports, which could undercut domestic production due to lower production costs in South America. The regulation sets out clear criteria for triggering measures, including injury thresholds and investigation procedures. This reflects a balance between trade liberalisation and agricultural protectionism: the EU seeks to reap the benefits of the Mercosur deal—such as lower tariffs for EU exports—while shielding sensitive sectors like beef, poultry, sugar, and ethanol. Critics argue the clause may be too weak to prevent real damage, while free-trade advocates warn it could be used protectionistly.
Impact on stakeholders - EU agricultural producers (especially beef, poultry, sugar, and ethanol sectors): Positive impact, as the safeguard provides a safety net against import surges, though the effectiveness depends on how easily the clause can be activated. - Mercosur exporters: Negative impact, as they face potential tariff hikes if their exports grow too fast, creating uncertainty for investment in EU-market supply chains. - EU consumers: Mixed impact—they may benefit from lower prices if imports flow freely, but could face higher prices if safeguards are triggered. - EU regulatory bodies (Commission, Council, Parliament): Moderate positive impact, as the regulation gives them a clear legal tool to manage trade disruptions, but also imposes procedural burdens for investigations.
Expected institutional follow-up The European Parliament's INTA committee will now examine the proposal, with amendments likely. The Parliament and Council must then agree on a final text through trilogue negotiations. The regulation is expected to enter into force before the interim trade agreement takes effect, ensuring safeguards are in place from day one.
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