EU's Strategic Moves to Secure Mercosur Trade Deal Amid Internal Opposition

The European Commission plans to reduce import duties on certain fertilizers and potentially suspend the EU's carbon border levy, aiming to rally support for the Mercosur trade deal. While major agricultural producers like Italy and France are cautious, the Commission remains hopeful of reaching an agreement.

The European Commission announced plans to decrease import duties on fertilizers and advance legislation to possibly allow temporary suspensions to the EU's carbon border levy, in an effort to secure a trade deal with Mercosur. The proposed concessions are aimed at gaining the backing of key EU member states to sign the agreement.

Despite the initiative, resistance persists from countries like France and Italy, which have urged excluding fertilizers from the carbon levy due to competitiveness concerns. The EU's largest proposed trade agreement aims to reduce tariffs significantly and strengthen exports impacted by U.S. duties.

Italy and France halted the deal's expected signing in December, insisting on addressing farmers' concerns about an influx of cheaper Mercosur goods. While the European Commission has garnered some support, particularly from Ireland, opposition from Poland, Hungary, and France remains staunch, necessitating further negotiations.

(With inputs from agencies.)