This article is touching upon the role of Common Agriculture Policy (CAP) on the free trade negotiations between the EU and Mercosur, which has turned out to be quite problematic for the decision-making and for the development of member countries of Mercosur. The theme researched is socially enquired and explained from two different theoretical approaches (economic nationalism and neo liberalism) that analyse how states act in relation to trade, power and hegemonies. The theoretical analysis addresses empirical data relating to both the trade relations between the two regional players as well as the history of the CAP in order to demonstrate the traditional role that agriculture holds within the EU and its indirect impact and influence towards free trade negotiations. The article is placing under criticism the decision-making and the contradictory policy of the EU in its free trade negotiations with Mercosur.