EU will lose face if it rejects Mercosur deal, warns trade commissioner

Tuesday, December 16, 2025 -The European Union risks serious credibility damage if it walks away from the long-negotiated Mercosur trade deal, the EU’s trade commissioner has warned. 

With global trade blocs hardening and competition for influence intensifying, rejecting the agreement now would signal hesitation and weaken the EU’s standing as a reliable economic partner.

The commissioner stressed that the deal would strengthen supply chains, expand market access for European exporters, and reinforce strategic ties with South America at a time when diversification is critical. 

While concerns remain over environmental protections and domestic industry safeguards, officials argue that years of revisions and commitments have already addressed core objections.

As pressure builds, the decision is becoming a test of Europe’s ability to act decisively in a fragmented global economy. 

Backing out could hand leverage to rival powers eager to deepen ties with Mercosur nations, while approval would signal that the EU is prepared to lead, compete, and secure growth-focused partnerships in an increasingly transactional world.