Politico: Who wins and who loses from the EU-Mercosur mega-agreement

After 25 years of negotiations, the European Union has signed a historic trade agreement with the South American bloc Mercosur, creating a free trade area for over 700 million people. The agreement will eliminate over 90% of tariffs on European exports, but the estimated economic impact is modest, with an increase of 77.6 billion euros by 2040, representing only 0.05% of the EU's GDP.

Among the winners is Italy's Prime Minister, Giorgia Meloni, who secured guarantees for Italian farmers, and the German automotive industry, which will benefit from reduced tariffs on car exports. European Commission President Ursula von der Leyen considers the agreement a strategic but costly success, given the subsidies promised to European farmers, which amount to 45 billion euros.

Although farmers' protests have been intense, the agreement includes protective measures for European products and strict quotas for meat imports from Latin America. On the other hand, French President Emmanuel Macron and U.S. President Donald Trump are seen as losers, while China is losing influence in Latin America.

A critical aspect remains the impact on the Amazon rainforest, where increased meat production could lead to deforestation, putting the environment at risk. The agreement, although promising, raises serious questions about sustainability and environmental protection.