The world’s largest meat company JBS could earn €1.7 billion (US$1.9 billion) in additional profits by 2040 if the highly contested EU-Mercosur trade deal is adopted, according to new analysis by Profundo. The Dutch research platform argues that new environmental damages might accompany extra profits, given that activists have repeatedly linked JBS to deforestation.

The EU-Mercosur agreement features a new quota of 99,000 metric tons of beef from Mercosur countries, entering the EU at a reduced 7.5% tariff. This quota is to be phased in over five years. Additionally, 180,000 metric tons of poultry would enter member states duty-free…

The two regions signed the deal in December 2024 after over two decades of negotiation between the EU and the four countries of the Mercosur economic bloc — (Argentina, Brazil, Paraguay, and Uruguay).

It aims to reduce trade tariffs and barriers, giving Mercosur countries better access to EU markets for agricultural exports like beef, poultry, and sugar…

Profundo’s study cites data claiming that JBS supplied around 46,000 metric tons of beef in 2023 and 200,000 metric tons of poultry products to EU markets. It also exports massive pork volumes but currently sells negligibly to the EU…

JBS did not immediately respond to requests for comment…