The European Commission has defended the EU-Mercosur trade agreement against concerns over market dominance by Brazilian meat giant JBS, arguing that existing safeguards and EU competition rules are sufficient to protect European producers and consumers. In a written answer on 18 June 2026, Commissioner Maroš Šefčovič, on behalf of the Commission, stated that the EU has no plans to suspend or reassess the Interim Trade Agreement (ITA), which has been provisionally applied since 1 May 2026.
The answer responds to a parliamentary question submitted on 7 May 2026 by 22 MEPs from across the political spectrum, led by Céline Imart (PPE). The MEPs had cited intelligence analyses and journalistic investigations alleging that JBS, the world's largest meat processor, has been involved in corruption, deforestation, and animal welfare violations, and warned that the agreement could create geoeconomic dependence on a company backed by Brazilian state instruments.
Šefčovič pointed to several prior assessments conducted before the agreement was signed, including a Sustainability Impact Assessment and an Economic Analysis of the Negotiated Outcome, which evaluated impacts on sensitive sectors like agriculture. He stressed that the ITA includes provisions to counter corruption and anti-competitive practices, requiring all parties to enforce comprehensive competition laws. Tariff-rate quotas and safeguard measures are in place to protect EU producers of beef and poultry from sudden import surges.
Additionally, the Commission highlighted the EU's Foreign Subsidies Regulation, which allows it to investigate and remedy distortions caused by foreign subsidies, such as government grants to companies like JBS. The Commission said it can also use the ITA's safeguard clauses and dispute settlement mechanisms if needed.
The answer signals a clear policy orientation: the Commission sees the existing legal framework as adequate and is not inclined to reopen or suspend the agreement. This stance prioritises trade liberalisation and market access over calls for stricter scrutiny of individual corporate actors. For EU farmers and meat producers, the Commission's position means continued exposure to competition from Mercosur imports, albeit within quota limits. For JBS and other Mercosur exporters, the agreement offers expanded market access, but they must comply with EU competition and anti-corruption rules. EU consumers may benefit from a wider range of products, while civil society groups concerned about corporate accountability and environmental standards are likely to be disappointed by the lack of additional measures.
Institutional follow-up is limited: the Commission has committed to monitoring the agreement's implementation and using existing tools if problems arise, but no new legislative or regulatory initiatives are announced. The European Parliament may continue to scrutinise the deal through debates or own-initiative reports, but the Commission's answer closes the door to a suspension.