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The European Council’s decision to postpone its vote on concluding the EU-Mercosur free trade agreement (FTA) is a missed strategic opportunity that threatens the EU’s credibility as a reliable partner. After more than 20 years of negotiations, the EU is once again delaying one of its most ambitious and strategic trade agreements.

The EU-Mercosur FTA’s economic benefits are clear. At a time when strengthening competitiveness, economic growth and partnerships should be paramount, the FTA provides access to a market of 284 million consumers – reducing tariff and non-tariff barriers and supporting integrated supply chains.

Beyond its economic benefits, the EU-Mercosur FTA is also an important geopolitical tool. It would anchor a long-term strategic partnership with a key region and reinforce the EU’s role as a credible advocate of rules-based trade. Amid heightened geopolitical rivalry, postponement weakens the EU’s standing and its ability to conclude ambitious FTAs elsewhere.

The EU cannot afford further delays. The EU-Mercosur FTA is vital for the region’s competitiveness, resilience and global credibility. The European Council must promptly return to this file and conclude this FTA in January.

The European Commission’s Environmental Omnibus proposal is a positive first step towards reducing the administrative and regulatory burdens on businesses operating in the EU. Key measures such as streamlining permitting, simplifying industrial emissions reporting, removing the SCIP database and easing Extended Producer Responsibility schemes would help create more efficient and harmonised processes across the EU. Additionally, the proposal’s indication of upcoming work on the Circular Economy Act and the swift implementation of the Packaging and Packaging Waste Regulation would further support a simplified regulatory environment.

By improving efficiency and predictability, the proposal would help foster a stable, investment-driven market in Europe and reinforce the case for sustainable practices. To fully deliver on the potential to reduce burdens for business, co-legislators must now move the Environmental Omnibus across the finish line. AmCham EU stands ready to serve as a resource in their efforts. These simplification initiatives in environmental regulation are crucial to maintaining Europe’s global standing as a hub for business and innovation. 

The Environmental Omnibus proposal is part of the Commission’s simplification agenda and follows its proposed Chemicals Omnibus, which introduced related environmental simplifications in July 2025. These important initiatives continue to drive efforts to cut red tape, reduce regulatory burdens and enhance the EU’s competitiveness.

On Tuesday, 9 December, AmCham EU hosted a discussion on the Food and Feed Omnibus and its role in simplifying Europe’s agri-food legislation. The conversation explored how a more coherent, innovation-friendly framework can reduce complexity and ease the administrative burden across the value chain. The discussion also underlined the importance of aligning regulation with scientific and technological progress, while reinforcing Europe’s competitiveness and strategic autonomy. Effective collaboration between policymakers and industry remains essential to ensure the Omnibus delivers practical improvements for operators throughout the agri-food sector.

During the panel, participants heard from Tyler Babcock, Senior Agricultural Attaché, US Mission to the European Union; Dr Eugene Kevin Foley-Friel, Agriculture Attaché, Permanent Representation of Ireland to the European Union and Astrid Sofie Vestergaard Nielsen, Food Attaché, Permanent Representation of Denmark to the European Union. The discussion was moderated by David Mills (Mondelēz International), Chair, Communications Group; Member of the Board of Directors and Vice-Chair, Agriculture & Food Committee, AmCham EU.