EU-Mercosur trade agreement will perpetuate a forest destructive model

Brussels - Today, the President of the European Commission and Head of States of relevant South American countries reached a political agreement for a Free Trade Agreement between the European Union and Mercosur.  

“This deal perpetuates the extractivist model in mining and agriculture – the two biggest drivers of forest destruction and land grabs in South America,” said Pierre-Jean Sol Brasier, campaigner at forests and rights NGO, Fern.  

An opaque process  

Civil society and Members of the European Parliament have called out the negotiations for being opaque. 

“Despite trade deals’ huge impacts on peoples’ daily lives, lands and security, this deal was hatched behind closed doors, with record low transparency. No consultation of local communities or Indigenous Peoples took place, when they are the best Guardians of the forests”. 

Brazil's largest umbrella Indigenous organisation, the Articulation of Indigenous Peoples of Brazil (APIB), has publicly opposed this deal on the grounds that it would threaten their lands and was based on an economic model that inherently damages them. Research has found that Indigenous territories will face increased deforestation pressure, because of this deal. 

A makeover of sustainability commitments  

The European Commission has called this deal “one of the most ambitious agreements in terms of sustainability, reflecting the latest EU standards on Trade and Sustainable Development (TSD).” 

TSD chapters in EU Free Trade Agreements have historically been heavily criticised due to their lack of enforceability. In 2022, the Commission suggested a renewed approach which, positively, extends State-to-State dispute settlements to TSD Chapters, but are still flawed. For instance, it is still unclear what action or inaction could be considered as a breach of TSD commitments. Often the commitments are vague and non-measurable.  

Despite being more than 20 years in the making, the Commission indicates that the EU-Mercosur’s TSD would follow this new approach. The Commission also states that the deal will “include a binding commitment to combat illegal logging and to tackle deforestation by 2030." 

“While we welcome the Commission and Mercosur countries’ commitments on forests, we also know from experience of existing Free Trade Agreements that sustainability commitments are overlooked. Let’s also not forget that the Agreement’s “raison d’être” is to increase trade in products that are harmful to nature and land rights.” 

Forgotten Cerrado  

In her announcement speech, Ms. Ursula von der Leyen put the emphasis on the need to “preserve” the Amazon and referred to it as an “extraordinary heritage” that “this agreement will respect”.  

The deal’s promoters have claimed that the EU Deforestation Regulation (EUDR) will also help prevent negative impacts. But the EUDR fails to protect important ecosystems, such as the Cerrado, Brazil’s new “deforestation frontier”.  

“It’s telling that Ms. von der Leyen referred specifically to the Amazon in her speech and overlooked other ecosystems. Increasing imports of agricultural commodities to the EU precisely risk fuelling further deforestation in ecosystems not covered by the EU Deforestation Regulation. The Cerrado and its Indigenous Peoples, in particular, face a grave threat because of this leakage,” said Sol Brasier.  

Image: PARALAXIS/Shutterstock

Categories: Press Releases, EU-Mercosur Free Trade Agreement