EU Mercosur Trade Agreement: Environmental Standards and Human Rights

By Lorenzo Izzi

The EU-Mercosur deal is set to be one of those controversial issues that will last for a long time. In terms of its impact on the environment, critics have warned that this deal will lead to an increase in Indigenous land confiscation as a consequence of deforestation in the Amazon. This is, therefore, in the eyes of critics, set to have massive and profound social and environmental implications. However, whilst food production is indeed a central cause of deforestation in Latin America, the European Union passed a law (EUDR) in 2023 which states that it is forbidden for EU companies or market actors to import products that have caused deforestation and placed on the EU common market. When this law becomes operational, therefore, it will apply to products that have been produced in Latin America as well and may even aim at regulating the market.

However, whilst this is indeed welcomed and constitutes a first attempt to regulate the producers’ market in Latin America, which in turn has profound social implications, it is unclear how it will be enforced, as, according to the Regulation, market operators should provide a risk assessment and then member states and the Commission will do counterchecks. The risk of illegal activities, therefore, seems to be still present even if the EU has made unlawful any import of such products which cause environmental and social harm, although this is a first attempt to regulate the Mercosur producers’ market to stop such problems. As Mercosur economies have started discussions on how to improve their deforestation records, some results are already present. Whether or not they will be substantial, thus, will be determined by the enforcement mechanism of the EUDR.