Environmental and farming groups have raised strong concerns after PM Luc Frieden announced Luxembourg's support for the Mercosur trade deal during his State of the Nation address, warning it could undermine climate goals, EU standards, and local agriculture, particularly the beef sector.

The Mercosur agreement seeks to establish one of the world's largest free trade zones between the European Union and the South American Mercosur bloc – comprising Brazil, Argentina, Paraguay and Uruguay. The prospect of Luxembourg's approval has alarmed environmental and farming representatives, many of whom view the agreement with scepticism and fear that its negative consequences might outweigh the benefits.

In his State of the Nation address, Frieden argued that Luxembourg depends on export markets to sustain its economy, especially at a time when new trade barriers are emerging in various parts of the world.

For Blanche Weber, president of the Luxembourg NGO Mouvement écologique, this approach appears to prioritise economic objectives over climate and ecological responsibility…

Weber expressed concern that the government's approach appears to reduce all policymaking to technical and economic development, with little sign of integrating ecological concerns into broader social and economic strategies…