The Mercosur trade deal risks derailing the EU’s plan to protect the world’s forests

ClientEarth asserts that the EU-Mercosur trade deal contradicts the EU Deforestation Regulation (EUDR) by allowing Mercosur countries to influence the implementation of EU law and by exposing EU Member States to trade disputes when enforcing deforestation rules. The analysis highlights specific articles in the agreement's Trade and Sustainable Development chapter that may force EU authorities to consider third-country information, potentially biasing objective assessments and country benchmarking processes. Furthermore, the agreement's broad definition of 'measure' and its 'rebalancing mechanism' could lead to legal disputes over EUDR compliance, creating political pressure that jeopardizes the EU's goal of protecting global forests.

• The EU-Mercosur Partnership Agreement includes provisions in Articles 54, 55, and 56 of the Trade and Sustainable Development chapter that may allow Mercosur countries to influence how the EUDR is implemented, potentially compromising the objectivity and independence of EU enforcement authorities.
• The agreement requires EU Member State authorities to consider information provided by Mercosur countries, which ClientEarth argues interferes with the independent assessment of whether companies are conducting adequate due diligence as required by the EUDR.
• Article 56(a) of the Trade and Sustainable Development Annex requires the Commission to give 'favourable consideration' to the Mercosur Agreement during country benchmarking assessments, which contradicts the EUDR's requirement for an 'objective and transparent assessment'.
• The agreement's broad definition of 'measure'—which includes laws, regulations, and implementing acts—combined with a 'rebalancing mechanism', creates a risk that EUDR enforcement actions could trigger trade disputes.
• The agreement specifically includes legislation that has not been 'fully implemented' at the conclusion of negotiations (6 December 2024), which ClientEarth argues encompasses the private-sector provisions of the EUDR that do not apply until 31 December 2025.

APA

Rice, M. (2024). The Mercosur trade deal risks derailing the EU’s plan to protect the world’s forests. ClientEarth. https://www.clientearth.org/latest/news/the-mercosur-trade-deal-risks-derailing-the-eus-plan-to-protect-the-worlds-forests/

Chicago

Rice, Michael. The Mercosur trade deal risks derailing the EU’s plan to protect the world’s forests. ClientEarth, 2024. https://www.clientearth.org/latest/news/the-mercosur-trade-deal-risks-derailing-the-eus-plan-to-protect-the-worlds-forests/.

Wikipedia

{{cite report |last1=Rice |first1=Michael |title=The Mercosur trade deal risks derailing the EU’s plan to protect the world’s forests |publisher=ClientEarth |date=20 December 2024 |url=https://www.clientearth.org/latest/news/the-mercosur-trade-deal-risks-derailing-the-eus-plan-to-protect-the-worlds-forests/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rice2024mercosur, author = {Rice, Michael}, title = {{The Mercosur trade deal risks derailing the EU’s plan to protect the world’s forests}}, institution = {ClientEarth}, year = {2024}, month = dec, url = {https://www.clientearth.org/latest/news/the-mercosur-trade-deal-risks-derailing-the-eus-plan-to-protect-the-worlds-forests/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }