EU Trade Accord Stalls: Italy and France withhold Support

Italy and France are hesitant to endorse a trade agreement between the EU and Mercosur, citing concerns over agricultural impacts and compliance with EU standards. While Germany and Nordic countries support the accord, Italian and French demands for better safeguards, particularly in agriculture, could delay the deal's finalization.

Italy and France have expressed reluctance to support a trade agreement between the European Union and the South American Mercosur bloc, which could hamper the deal's conclusion. The agreement aims to alleviate export challenges posed by U.S. tariffs and reduce reliance on China's mineral supply.

Italian Prime Minister Giorgia Meloni and French President Emmanuel Macron are calling for cautious steps to ensure farmers' interests and better safeguards. Italian demands include reciprocity guarantees, while France calls for alignment with EU standards on pesticides, animal welfare, and food safety.

This discord arises as Brazilian President Luiz Inacio Lula da Silva warned that Brazil might withdraw from the agreement if unmet. Meanwhile, the Mercosur bloc pursues trade agreements with other nations, including Japan and India.

(With inputs from agencies.)