EU-Mercosur Trade Pact: A Controversial Milestone

The European Commission aims to secure the EU-Mercosur trade deal, which promises significant tariff reductions and reduced reliance on China. Italy and France have raised concerns over agricultural impacts, but negotiations continue. EU support hinges on approval from member states and the European Parliament.

The European Commission is pushing to finalize the long-anticipated EU-Mercosur free trade agreement, potentially signing it next week. Supporters argue it's the EU's most substantial deal regarding tariff reductions, critical for boosting exports amid U.S. import tariffs and diversifying away from China's mineral supply.

Despite backing from key nations like Germany and Spain, the deal requires approval from the majority of EU members and the European Parliament. At a recent meeting in Brussels, European commissioners assured national agriculture ministers about continued funding under the Common Agricultural Policy and stringent import controls.

Italy and France, key agricultural players, initially blocked a December signing due to concerns over cheap commodity imports from Mercosur. With proposed financial aid, Italy appears swayed, but Poland, Hungary, and France remain critical. French Agriculture Minister Annie Genevard vowed to continue opposing the deal, emphasizing ongoing political challenges.

(With inputs from agencies.)