EPERNAY, France — As tensions escalate in a full-scale trade war initiated by Donald Trump, France is actively seeking to replace the United States as a key trade partner. This shift raises the question: Is Paris now open to accepting a significant trade agreement with South America, particularly the Mercosur deal, which it has vehemently criticized in the past?
France’s call for trade diversification
Speaking to POLITICO on Friday, French Trade Minister Laurent Saint-Martin expressed hope that the recent imposition of 20 percent tariffs on all EU goods by Washington would serve as a catalyst for the European Union to explore new trade partnerships. “This is a wake-up call on trade agreements,” he stated, emphasizing the necessity for Europe to diversify its trading relationships.
Saint-Martin articulated that making trade diversification a priority is essential for Europe to assert itself not only as a formidable power in negotiations with the United States but also as an entity open to other global markets. He identified Mercosur as a potential avenue but noted, “the agreement just has to be acceptable. As it stands, it still isn’t.”
Pressure for changes in the Mercosur agreement
The minister expressed optimism that the European Commission would expedite necessary adjustments to the longstanding EU-Mercosur pact—an arrangement that includes Argentina, Brazil, Paraguay, and Uruguay. “The Mercosur deal is a good agreement if, and only if, we manage to have mirror clauses,” Saint-Martin stated, underscoring France’s demand that imported agricultural products adhere to the same production standards expected of EU farmers.
Historically, France has been the most vocal opponent of the EU-Mercosur deal, which was finalized last year but still awaits ratification from EU member states before it can be enacted. Saint-Martin remarked that there remains time for the Commission to alter the agreement to ensure it aligns more closely with France’s standards. “We have a few months ahead of us, until about the end of the summer, to do this work with the Commission, and I hope it will be fruitful,” he added.
However, revisiting negotiations could prove challenging, coming on the heels of a historic agreement reached after over two decades of discussions. The current text is undergoing translation and legal review before being presented for a vote among EU countries.
During his visit to Epernay, renowned for its prestigious champagne houses, Saint-Martin met with producers apprehensive about Trump’s threats to impose staggering 200 percent tariffs on European wines, champagnes, and spirits. The minister toured the cellars and bottling facilities of Pol Roger, a favored champagne maker of Winston Churchill.
In an effort to garner support for the proposed amendments to the Mercosur deal, France convened ministers from Poland, Italy, Austria, Romania, and Belgium for discussions. During this meeting, French Europe Minister Benjamin Haddad suggested a request to the Commission to incorporate an automatic safeguard clause regarding “the most sensitive agricultural products,” according to a French diplomat who spoke on the condition of anonymity to adhere to professional norms.