Florian Couveinhes Matsumoto and Sabrina Robert, Professors of Public Law and International Law, have produced for the Veblen Institute an in-depth analysis of the “Rebalancing Mechanism” of the EU-MERCOSUR Free Trade Agreement that we publish today. The note offers a review of rebalancing mechanisms already in place, which highlights the anachronistic nature of including such a mechanism in the EU-Mercosur Agreement; secondly, a detailed analysis of the conditions for implementing this rebalancing mechanism, which leaves many questions unanswered; thirdly, an examination of the risks of capture for the European regulator that arise from this mechanism.

In this note, Canopée and the Veblen Institute take stock of the impact of the implementation of the EU-Mercosur agreement on deforestation, as well as the EU regulation against deforestation. The brief also analyses the relevance of the proposed safeguards.

This note analyses part of the final text of the EU-Mercosur Agreement. It shows in particular that the clauses added at the request of the EU will not effectively prevent the expected health and environmental impacts. The addition of a concessions rebalancing mechanism will also make it very difficult to adopt and effectively implement mirror measures within the EU, as well as in Mercosur countries.