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EU Moves Toward Mercosur Trade Deal After Farm Concessions Win Italy’s Support

A last‑minute farm‑support offer helped bring Italy onside, leaving France’s planned import controls as the main obstacle.

Overview

  • EU member‑state ambassadors are expected to consider final authorization on Friday after an agriculture ministers’ meeting, with a possible signing in Asunción on January 12 and a European Parliament vote still to follow.
  • The European Commission proposed early access to roughly €45 billion in future Common Agricultural Policy funds, a move Italy welcomed as it signaled readiness to back the pact.
  • Officials discussed further measures, including temporary relief on fertilizer import tariffs and safeguard tools that could curb beef and poultry imports if European prices are significantly undercut.
  • France announced a decree to suspend sales of South American foods containing residues of EU‑banned pesticides, a step that requires European Commission approval within about 10 days.
  • The agreement would eliminate about 90% of tariffs and link markets covering some 700 million people, while resistance from France, Poland and Hungary persists but may fall short of a blocking minority.