The great big, enormous row about the EU’s Trade Agreement with the Mercosur countries of South America has been bubbling away now in the background of the news for months. If you’ve been scanning the headlines and aren’t sure what it’s all about, here’s a one paragraph summary:

The deal essentially permits free trade between the EU and the Mercosur countries (Brazil, Argentina, Bolivia, Paraguay, and Uruguay) that will open up South American markets for EU industrial products (mainly German cars) and will in return open up the EU market for South American agricultural produce (most controversially, beef). The deal is a win/win for the South Americans, whose citizens will be able to access more expensive EU products at a lower price, while obtaining new markets for their own goods. It is also a win for most of Europe’s remaining heavy industries. It is, however, a potential catastrophe for Europe’s farmers, who will find that the vastly lower cost of producing beef in South America means that demand for their own products may fall.

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