Entry into force of the EU-Mercosur agreement: last act of an endless drama for Germany?
At the World Economic Forum in Davos on January 20, 2026, Ursula von der Leyen, the President of the European Commission, stated that "geopolitical shocks can and must serve as opportunity for Europe".
Caught between an increasingly assertive China and an increasingly protectionist United States, the European Union (EU) intends to resist export restrictions, economic coercion, and tariffs by prioritizing "partnership instead of isolation."
The implementation of the EU's trade agenda is indeed accelerating with the conclusion this year of the agreements with Mercosur and India, as well as the completion of trade negotiations with Australia.
Often somewhat simplistically described as a "cows versus cars" agreement, the EU-Mercosur agreement was nonetheless the result of a long and arduous process. Initiated in 1999, then revived in 2019, negotiations were relaunched in 2024, leading to the conclusion of the agreement in January 2026. But criticism of the agreement did not fade away.
Marie Krpata is Research Fellow at the Study Committee on Franco-German Relations (Cerfa) at the French Institute of International Relations (Ifri).
- This publication is available in French (pdf): "Entrée en vigueur de l’accord UE-Mercosur : aboutissement d’un drame sans fin pour l’Allemagne ?"
Available in:
Themes and regions
Share
This page contains only a summary of our work. If you would like to have access to all the information from our research on the subject, you can download the full version in PDF format.
Entry into force of the EU-Mercosur agreement: last act of an endless drama for Germany?
Marie KRPATA
Research Fellow, Study Committee on Franco-German Relations (Cerfa), Ifri
The Study Committee on Franco-German Relations (Cerfa)
The Study Committee on Franco-German Relations (Cerfa) was created in 1954 by an inter-governmental agreement between the Federal Republic of Germany and France, in order to raise awareness of Germany in France and analyze Franco-German relations, including in their European and international dimensions. In its conferences and seminars, which bring together experts, political leaders, senior decision-makers and representatives of civil society from both countries, Cerfa develops the Franco-German debate and stimulates political proposals. It regularly publishes studies through two collections: Cerfa notes and studies as well as Franco-German visions.
Cerfa maintains close relations with the network of German foundations and think tanks. In addition to its research and debate activities, Cerfa promotes the emergence of a new Franco-German generation through original cooperation programs. This is how in 2021-2022, Cerfa led a program on multilateralism with the Konrad Adenauer Foundation in Paris. This program is aimed at young professionals from both countries interested in the issues of multilateralism in the context of their activities. It covered a wide range of themes relating to multilateralism, such as international trade, health, human rights and migration, non-proliferation and disarmament. Previously, Cerfa had participated in the Franco-German future dialogue, co-led with the DGAP from 2007 to 2020, and supported by the Robert Bosch Foundation and the Daniel Vernet group (formerly the Franco-German Reflection Group) which was founded in 2014 upon the initiative of the Genshagen Foundation.
Franco-German Relations Through the Lens of Donald Trump’s Second Term: Between Strategic Realignments, European Sovereignty, and the Enduring Transatlantic Bond
Donald Trump’s return to the presidency of the United States in 2025 acts as a powerful catalyst for the Franco-German relationship. Faced with growing uncertainty over the reliability of US security guarantees, Germany, more directly affected by the questioning of the transatlantic relationship, is gradually moving closer to the French position in favor of strengthening European strategic sovereignty.
MAGA and AfD: Toward a Transatlantic Alliance of Nationalist Right-Wing Parties
The rapprochement between Donald Trump’s MAGA movement and Germany’s AfD has accelerated significantly since Trump’s return to the White House.
VW, Mercedes, and BMW in the Face of Donald Trump—A Tightrope Walk Between Investing in the U.S., Maintaining Operations in Europe, and Catching Up in Electric Mobility
The German automotive industry faces a threefold challenge: competition from China; a difficult transition to electric vehicles; and US tariffs.
A Partnership Built on Security: Post-Brexit Rapprochement between Germany and the United Kingdom
Since the UK’s withdrawal from the EU, UK-German relations have undergone a remarkable transformation: from Berlin’s deliberate distancing from London during the Brexit negotiations, when Germany consistently prioritised EU-27 unity over bilateral arrangements, to a gradual rapprochement, culminating, for the time being, in the 2025 Kensington Treaty of Friendship.