After 25 years of negotiations, Besse said that rejecting the agreement now would be a wasted opportunity to expand markets, strengthen production chains, and reduce the influence of other global competitors.

“Signing the agreement was a game-winning goal for Europe in the last minute of the match,” he said in an interview with Valor. Opposing its ratification now, he argued, “would be like scoring an own goal and handing the game over to China.”

He emphasized that the deal offers a historic opportunity for strategic economic integration between two blocs that share common values and institutions, especially at a time of growing global instability.

Broad benefits

Besse said a range of French sectors stand to benefit from the agreement’s implementation, including wine, champagne, and spirits, dairy products, and goods with protected designations of origin. Industrial sectors such as aerospace, automotive, pharmaceuticals, and energy—particularly renewables—would also see gains.

The agreement was signed on Saturday (17) in Paraguay by Mercosur representatives and European Commission President Ursula von der Leyen. It creates the world’s largest free trade area, encompassing over 700 million consumers across 32 countries—27 in the EU and five in Mercosur—with a combined GDP of $22 trillion.

Despite optimism among business leaders, the deal hit a political setback on Wednesday (21), when the European Parliament voted to request a legal review of the agreement. The decision, passed with 334 votes in favor, 324 against, and 11 abstentions, sends the text to the European Court of Justice to assess its compliance with EU laws, potentially freezing the process for at least two years.

To overcome such opposition, Besse said it is essential to raise awareness across Europe of the deal’s benefits. “European investors and entrepreneurs in this region need to help educate people in their home countries. We are living proof that this is a land of opportunity,” he said.

Farming concerns

France has been at the center of the resistance. The country was one of five that voted against the deal within the European Commission and has led opposition driven by pressure from the agricultural sector. French producers argue the agreement would lead to unfair competition and misaligned environmental and sanitary standards between the EU and Mercosur.

Concerns include the use of pesticides banned in the EU and looser rules on environmental protection and deforestation. European producers fear that complying with stricter rules at home will make their products more expensive and less competitive.

Besse acknowledged that some concerns—particularly in the livestock sector—are legitimate but argued that the debate in France has been “hijacked” by narratives he considers exaggerated and out of touch. “Unfortunately, we’ve ended up with an irrational interpretation of the agreement,” he said.

He drew parallels to the EU-Canada free trade agreement, which initially faced resistance from French agricultural groups. “Ten years later, we can see that it worked out well for everyone. Trade flows increased in both directions,” he said.

Untapped potential

Besse said the agreement includes important safeguards. For example, beef imports from Mercosur to the EU will be capped at 99,000 tonnes per year, just 1.2% of the bloc’s total beef consumption. “It’s not like half the beef consumed in Europe is suddenly going to be replaced,” he noted.

Among the sectors likely to benefit immediately are wines, champagnes, spirits, dairy, and protected-origin products, which will receive legal protection in the South American market. France currently exports about 700,000 bottles of wine and champagne to Brazil each year, a number that should increase as tariffs drop. “French wine will finally compete on equal footing with Argentinian and Chilean wine,” Besse said.

In the industrial sector, expected gains include aerospace, automotive, electrical equipment, pharmaceuticals, cosmetics and beauty products, infrastructure, and energy. In particular, Besse highlighted growth in renewable energy, where French and European firms have a strong and growing presence in Brazil, including in wind and solar energy, transmission lines, and hydropower plants.

Corporate presence

French corporate presence in Brazil is significant. According to Besse, about 1,300 French companies operate in the country, generating more than R$400 billion in revenue in 2024 and employing approximately 560,000 people. That makes France the largest foreign employer in Brazil and the second-largest foreign investor, behind only the United States.

Still, bilateral trade remains modest. In 2024, it totaled around €8 billion, with a relatively balanced flow between imports and exports.

Besse said the agreement opens “a highway” for expanding trade in the medium term, as tariff reductions will be gradual. He noted that in addition to large multinationals, the deal should benefit French small and medium-sized enterprises, which currently face greater hurdles in accessing the Brazilian market.

He also stressed the deal’s geopolitical importance at a time when multilateralism is under pressure and trade tensions—particularly with the United States—are on the rise.