EU-Mercosur Trade Deal Faces Opposition from Italy and France

Italy and France have stalled the progress of the EU-Mercosur trade agreement, citing concerns over agricultural safeguards. The deal, involving EU countries and the South American Mercosur bloc, aimed to reduce dependence on China and facilitate exports. Discussions continue, with hopes of resolution by next year.

Italy and France have announced their hesitation in supporting a trade agreement between the European Union and the Mercosur bloc, hindering finalization efforts. This development derails the anticipated timeline for signing.

European Commission President Ursula von der Leyen was expected in Brazil to endorse the deal, which had taken 25 years of negotiations with Argentina, Bolivia, Brazil, Paraguay, and Uruguay. With approval from Germany, Spain, and Nordic countries, the agreement is seen as a way to boost exports affected by U.S. tariffs and reduce reliance on China by enhancing mineral access.

However, Italian Prime Minister Giorgia Meloni and French President Emmanuel Macron seek delays, citing the need for stronger protections for European farmers. They demand 'mirror clauses' to ensure Mercosur products adhere to EU pesticide regulations and food safety standards. As negotiations continue, Italian and French governments emphasize the necessity of adequate agricultural reciprocity guarantees.

(With inputs from agencies.)