The retail giant, Carrefour, recently sparked controversy and criticism by choosing to boycott beef from the Mercosur trading bloc. The decision presented a potential hurdle to the ongoing negotiations between Mercosur and the European Union (EU), as Carrefour is a significant player in the global market. Carrefour’s global CEO, Alexandre Bompard, explained the company’s initial decision to stop buying Mercosur beef in a letter to French producers. Bompard cited environmental concerns as the main driving force behind the choice. However, this move triggered a swift and strong backlash from both the Brazilian production sector and the government, leading to a nationwide boycott of Carrefour until it reconsidered its stance. In the wake of this backlash, Carrefour quickly backtracked, announcing in a public retraction that it would continue to buy beef from Mercosur. Although the controversy was short-lived, it highlighted the tense atmosphere surrounding the trade agreement between the EU and Mercosur. The deal has been stuck in limbo for over two decades, with France known for its opposition to it. French agricultural groups, fearing competition from South American products, frequently pose barriers to the negotiations. Carrefour’s announcement was seen as an attempt to bolster this resistance. Brazilian diplomats, however, viewed Carrefour’s about-face as sufficient to mitigate any potential impacts on the dialogue between the trading blocs. They pointed out that the European Commission, which is favorable to the treaty, leads the negotiations on behalf of the EU. The Brazilian response to Carrefour’s initial boycott was swift and decisive. Meatpackers halted sales to Carrefour, pressuring the company to re-evaluate its position. For the Brazilian government, it was critical to respond quickly to prevent other EU countries from adopting similar positions. While the EU bloc accounts for only 3.39% of Brazil’s beef exports, they recognized that attacks on the product’s reputation could result in broader commercial ramifications. Senator Nelsinho Trad, Brazil’s representative in Parlasul, plans to bring this issue to the next session of the regional parliament on December 9. Trad advocates for a unified Mercosur stance, highlighting commitments to sustainability and fair trade.
