The European Union and four South American states (Argentina, Brazil, Paraguay and Uruguay) concluded a free trade agreement on January 17, 2026, which was the result of a 25-year negotiation process. The document provides for almost complete elimination of duties within the common market, which covers about 700 million people, writes the Financial Times.
However, the agreement reached has drawn sharp criticism from US officials. They claim that the agreement significantly complicates the export of American agro-products, as it provides protection for more than 340 products with geographical indication, including such well-known European products as prosciutto di Parma, feta cheese and champagne. In fact, according to U.S. officials, it blocks the way for U.S. producers to enter the South American market.
One U.S. official with knowledge of the negotiations said, “This is a blatant attempt to limit competition and export opportunities for non-European suppliers” in the large market for dairy products and processed meats. He said the agreement effectively gives EU producers a monopoly position and displaces U.S. competitors.
Washington’s criticism has intensified amid general trade tensions between the U.S. and the EU. Of particular concern is the slow pace at which duties and regulatory barriers have been reduced since the limited agreement was signed last year. US farmers have already suffered losses due to trade wars, and the US government has been forced to give them $12 billion in aid.
The issue of access to the U.S. market has come up repeatedly during U.S. negotiations with Brazil and the EU. A representative of one of the Mercosur countries admitted that this is Washington’s claim, but recalled that there have been no recent official contacts on this issue.
Discussions around the new agreement are taking place against the background of the US desire to strengthen its influence in the Western Hemisphere, in accordance with the “Monroe Doctrine”. At the same time, most EU countries supported the agreement, despite protests from European farmers who claim that Mercosur producers are held to lower standards of animal welfare and pesticide use.
For the EU, signing the agreement is part of a strategy to expand favorable trade ties in response to harsh U.S. protectionist policies. European Commission chief Ursula von der Leyen emphasized that the agreement demonstrates Europe’s ability to set its own foreign economic course and remain a stable partner, and underscores the strength of its relationship with Latin America.
The European Commission, the Office of the U.S. Trade Representative and the Brazilian Ministry of Commerce refrained from officially commenting on the allegations.
