The agreement pays import duties on more than 90% of EU goods exported to Mercosur. Tariffs on certain products will be liberalized for longer availability periods to allow sufficient time for companies in Mercosur countries to adapt. But the two sides failed to agree on each other`s final offers. Among other things, Mercosur has not been satisfied with EU rules on access to the agricultural market, while the EU has complained about the lack of Mercosur proposals to open up its telecommunications sector and improve the protection of European geographical indications. In general, commentators have blamed the failure of the talks on the lack of mutual political will. The agreement came after twenty years of negotiations. Talks began in 1999, but stagnated before regaining momentum in 2016.  The talks had failed for years due to opposition from European beef producers, especially small farmers, who feared being underestimated by imports from Brazil, the world`s largest beef producer.  Many South American governments at that time preferred “South-South cooperation” to building relations with Europe, while European governments also had other priorities.
 Small businesses are more likely to reach small businesses than large businesses, as small businesses may not have the time and resources to overcome them. This is why the EU has called for the establishment of a specific chapter for small and medium-sized enterprises (SMEs) in trade agreements to address the specific challenges of SMEs in international trade and investment activities. Since the start of the negotiations, the Commission has carried out several studies on the potential impact of a trade agreement with Mercosur. In addition to Austria, which strongly opposes the agreement, irish governments (want enforceable environmental protection), France (said that the agreement must comply with the Paris climate agreement and that it must not contribute to deforestation, and that imported agricultural products comply with EU health and environmental standards), Belgium (Wallonia is concerned about the impact on its small and sustainable farmers), the European Parliament and the new Trade Commissioner Valdis Dombrovskis have expressed concern about the agreement. Even parts of the federal government have expressed concern about the deal regarding current deforestation in the Amazon, although Germany seems determined to impose it.