The European Milk Board (EMB) has said the approval of the EU-Mercosur Trade Agreement is a "betrayal of EU agriculture".
Representatives of EU member states have voted in favour of adopting the agreement in a key vote today (Friday, January 9).
The EMB said the Mercosur agreement is a "frontal attack" on European agriculture.
"It destroys farming livelihoods, pushes down producer prices and forces farms into a ruinous competition with imports produced under significantly lower social, environmental and health standards," it said.
"The majority approval of the EU-Mercosur agreement by EU member states today is therefore extremely problematic."
The EMB is urging for "responsible policymaking".
It said that means, firstly, "no Mercosur agreement".
Secondly, the EMB is urging for the "immediate activation of the voluntary milk supply reduction instrument, in order to stop the current price collapse on the milk market and finally give farms an economic perspective again".
"An EU that takes food sovereignty, climate protection and the preservation of rural areas seriously must stop the EU-Mercosur agreement and, at the same time, stabilise agricultural markets," the EMB added.
"Anything else would be politically irresponsible and a fatal signal to Europe’s farming sector."
The EU Mercosur Trade Agreement would eliminate tariffs on 91% of all products exported between the two regions.
A maximum limit (quota) will be put on the amount of agri-food products imported from Mercosur that benefit from lower tariffs:
In exchange, the EU will be able to export goods to the Mercosur countries at much more favourable tariffs, such as machinery and cars.