The European Commission made a decision to provisionally implement the trade part of the agreement with the Mercosur bloc, which, according to procedures, allows for its application before the final vote in the European Parliament. The move has sparked fury in France and protests by farmers across Europe. Simultaneously in Argentina, President Javier Milei pushed through a controversial labor reform in the Senate, introducing a 12-hour workday and making layoffs easier, which is intended to radically increase the competitiveness of the local economy.

Provisional Mercosur Implementation

The European Commission activates the trade agreement without the European Parliament's consent, accelerating tariff elimination.

Radical Labor Reform in Argentina

Legislation has been adopted introducing a 12-hour workday and making it easier to lay off employees.

Revolt of French Farmers

Farmers across France are announcing blockades in protest against the influx of cheap food.

The European Commission's decision to initiate the provisional application procedure for the trade agreement with the Mercosur countries marks a turning point in transatlantic relations. President Ursula von der Leyen justified the haste as a "geostrategic repair" and the need to protect European economic interests from competition from China and the USA. This mechanism allows key trade provisions to enter into force without waiting for full ratification by national parliaments and the European Parliament. This has triggered sharp political reactions, especially in Poland and France, where MEPs are decrying "EC tyranny" and an "assault on consumer health" due to lower sanitary standards for food products from South America. At the same time, the Argentine parliament has finally adopted a package of laws reforming the labor market, considered a historic victory for President Javier Milei. The new law radically increases employment flexibility, introducing a 12-hour workday and allowing salaries to be paid in foreign currency or partly in kind. The reform significantly lowers business costs, which, combined with the new deal with the EU, could make Argentine agricultural and industrial products extremely cheap on the European market. This raises legitimate concerns among farmers in France and Poland about unfair competition from Latin American farms, which do not have to comply with stringent EU requirements. Negotiations between the EU and Mercosur have been ongoing since 1999 and have been repeatedly blocked by France due to concerns about food security and environmental protection in the Amazon. President Emmanuel Macron described Brussels' actions as a "bad surprise" and pledged to fight for the interests of French farmers. On the other hand, some European exporters from industrial and service sectors are counting on benefits from tariff reductions in a market of 720 million consumers. This situation deepens divisions within the Union, pitting industrial and export interests against the agricultural sector and the sovereignty rhetoric of conservative parties, which label the Commission's actions as "Euro-communism." „C'est une mauvaise surprise pour la France et nos agriculteurs.” (This is a bad surprise for France and our farmers.) — Emmanuel Macron „Acabamos de dar el primer paso hacia la verdadera libertad económica.” (We have just taken the first step towards true economic freedom.) — Javier Milei

Mentioned People

  • Javier Milei — President of Argentina, initiator of radical free-market reforms.
  • Ursula von der Leyen — President of the European Commission, pushing for the Mercosur agreement.
  • Emmanuel Macron — President of France, one of the main opponents of the current shape of the agreement.
  • Ewa Zajączkowska-Hernik — Polish MEP, critic of the European Commission's actions.