Green Light for EU-Mercosur Agreement: A Game-Changer in Global Trade

The European Commission has secured Italy's crucial support for the EU-Mercosur trade deal, overcoming previous opposition from Italy and France due to farmers' concerns. A proposed €45 billion support boost for farmers influenced Italy's stance. The agreement, set to be signed soon, promises significant tariff reductions and aims to diversify EU trade partners.

The European Commission secured a pivotal endorsement from Italy on Tuesday for the controversial EU-Mercosur trade agreement, clearing a path for the EU to sign the deal imminently.

Last month, Italy and France delayed the deal, voicing concerns over an influx of cheap commodities from Mercosur. However, a compromise was reached after the European Commission proposed accelerating €45 billion in support for farmers, a move Italian Prime Minister Giorgia Meloni praised as a 'positive and significant step forward.'

The executive, backed by Germany and Spain, aims to gather a majority of 15 EU members, representing 65% of the population, for authorization. With Italy now onboard, the deal could be the EU's largest in tariff reductions.

(With inputs from agencies.)