EU pushes Italy to back long-awaited Mercosur trade deal

Germany and the European Commission are making a final effort to secure Italy’s support for a long-delayed free trade agreement with the South American Mercosur bloc, sources say, as the accord faces the risk of collapse if not signed soon.

The EU-Mercosur trade pact, more than 25 years in the making, would be the EU’s largest in terms of tariff reductions. Proponents, including Germany, Spain, and Nordic countries, argue that it would help European exporters affected by U.S. tariffs and reduce dependency on China by improving access to critical minerals, Caliber.Az reports per Reuters.

However, critics warn that the deal could flood European markets with cheaper commodities, such as beef, potentially harming local farmers. Poland has openly opposed the deal, while France is advocating for a delay. Consequently, Italy has become the focal point of EU lobbying efforts.

Bernd Lange, head of the European Parliament’s trade committee, told Reuters that a high-level meeting took place on December 15 between Italian Prime Minister Giorgia Meloni, German Chancellor Friedrich Merz, and European Commission President Ursula von der Leyen. “If Italy is not on board, it’s over. I hope today we will see a little clearer,” Lange said.

Sources familiar with the discussions indicate that Meloni and French President Emmanuel Macron have reportedly agreed on delaying a vote, reflecting the internal divisions within the EU.

The EU and Mercosur countries — Argentina, Brazil, Paraguay, and Uruguay — reached an agreement in principle last December. Von der Leyen had planned to travel to Brazil this weekend to formalize the pact but requires approval from the Council of EU governments. To block the deal, opposition from four EU countries representing at least 35% of the bloc’s population is needed, and diplomats suggest that another member state, such as Hungary, may dissent.

On December 16, EU lawmakers were scheduled to vote on measures to strengthen protections for European farmers, a key demand raised by France in the ongoing negotiations.

By Khagan Isayev