Mercosur Trade Deal in Jeopardy as EU Negotiations Intensify

The EU's largest trade agreement with Mercosur faces challenges as Germany, Spain, and Nordic countries press Italy to support the deal amid opposition from Poland and delays by France. With a signing deadline approaching, EU officials seek approval from key nations to solidify the agreement.

The European Union's attempts to seal a landmark free trade agreement with the South American Mercosur bloc are at a critical juncture, as Italy's backing is crucial for its success. After nearly 25 years in negotiation, the deal has become the EU's largest proposed trade pact in terms of tariff reductions.

Germany, Spain, and Nordic countries are championing the agreement, highlighting its potential to boost exports affected by U.S. tariffs while reducing reliance on China for critical minerals. However, the proposed pact has drawn criticism, with opponents worried about a surge in cheap commodities, including beef, which could threaten European farmers' livelihoods.

Lobbying efforts are focusing on Italy amid Poland and France's resistance to rapid approval. European Parliament's trade committee head, Bernd Lange, emphasized that Italy's support is pivotal, with a meeting between high-profile EU and Italian leaders taking place to discuss the way forward. If delayed further, the Mercosur countries may seek alternative partners.

(With inputs from agencies.)