The EU is already Mercosur`s main trading and investment partner.  In 2018, 20.1% of the trade bloc`s exports were exported to the EU.  Mercosur`s exports to the EU amounted to EUR 42.6 billion this year, while EU exports to Mercosur countries amounted to EUR 45 billion.  Mercosur`s largest exports to EU countries are agricultural products such as food, manufactured beverages and tobacco, plant products such as soybeans and coffee, and meat and other animal products.  Among Europe`s largest exports to Mercosur are machinery, transport equipment and chemicals and pharmaceuticals.  In 2017, the EU exported 23 billion euros of services to the South American trading bloc, while around 11 billion euros of services arrived from Mercosur to Europe.  The EU encourages Brazil to remove tariff and non-tariff barriers and promote a stable and more open regulatory environment for European investors and traders. The agreement is expected to result in a significant increase in Brazilian beef exports to all EU countries.   Under the agreement, the EU will open its markets to a quota of up to 99,000 tonnes of beef per year, at a preferential rate of 7.5% inches.  Farmers across the EU oppose it, especially small farmers who fear being underestimated in terms of prices.  The COPA-COGECA union, which represents 23 million farmers in the EU, warned that the agreement “will go down in history as a very dark moment”.  The Irish Farmers` Association condemned the agreement as a “shameful and weak sell-off”.  In June 2019, the European Union (EU) and Mercosur (Brazil, Paraguay, Argentina and Uruguay) announced that they had reached an agreement in principle on the content of a bilateral trade agreement they have been negotiating for more than 20 years.
Most of the text of the trade agreement is now public in draft form, although some important annexes and the preamble to the framework are not available. This may be because they are still being developed behind closed doors. France is not alone with its opposition. The Dutch Parliament has adopted a motion against the EU-Mercosur trade agreement on the grounds that it could create unfair competition for European farmers and speed up deforestation of the Amazon – the same objections have been raised by the Austrian, Belgian (Valonia) governments, Ireland and Luxembourg, as well as dozens of MEPs.