Von der Leyen’s Deals with BRICS: Gains for Elites, Costs for Citizens

The European Union, having concluded agreements with India and Mercosur, is adapting to a multipolar world because it no longer has the option of abandoning it. The question is whether this adaptation will be intentional or destructive.

“Mother of All Deals” with India – Pragmatism or Capitulation?

On paper, the promise is substantial. EU exporters gain entry to one of the fastest-expanding consumer markets in the world. Indian textiles, agricultural products, and IT services flow westward at lower cost. Trade volumes are projected to expand significantly over the coming decade. Yet scratch beneath the headline figures, and the picture shifts. This is not a triumph of multipolar strategy. It is a defensive concession by a Union that has priced itself out of its own production base.

Ordinary citizens feel the asymmetry first. Cheaper imports ease household budgets – short-term relief. But sectors exposed to Indian competition—textiles, low-margin manufacturing, and segments of pharmaceutical – face immediate pressure. Jobs migrate or disappear. Small and medium enterprises in peripheral regions – Poland, Romania, Greece – absorb the shock, while multinational players like Bayer or Siemens capture the upside through market access and supply chain arbitrage. This is not broad-based prosperity. It is trickle-up economics dressed as global partnership.

Mercosur – Dumping Dressed as Diversification

The pattern repeated almost simultaneously with the finalization of the EU-Mercosur agreement in January 2026. Tariffs were eliminated on over 90% of EU exports, while South American beef, poultry, soy, and ethanol gained near duty-free access to European markets. Brussels presented the pact as a win for consumers and businesses, emphasizing diversification and resilience.

Farmers across the continent saw something else entirely. The protests that paralysed highways across Europe were not symbolic gestures. They were desperate reactions. Mercosur imports enter under conditions that bypass the very standards imposed on EU producers – animal welfare rules, hormone bans, carbon costs embedded in the Green Deal. This is not inferior food. It is food produced under regulatory regimes that make it structurally cheaper than anything viable inside........

© New Eastern Outlook