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EUMercosur Deal Nears Approval as Italy Signals Support After Farm Concessions

EU ambassadors are slated to vote Friday, potentially clearing the way for a Jan. 12 signing if a qualified majority is secured.

Overview

  • Brussels offered significant measures to placate farm-sector concerns, including advancing roughly €45 billion from the next CAP budget cycle and temporary relief on fertilizer import charges.
  • Sources indicate Italy is now inclined to back the pact, a shift that would give the EU the numbers to authorize signature despite opposition from France, Poland and Hungary.
  • Commission documents also outline safeguard mechanisms that could be triggered if Mercosur poultry or beef imports depress EU prices.
  • France announced a decree to suspend sales of food imports containing residues of substances banned in the EU, a step that requires European Commission approval within 10 days.
  • Farmer protests escalated across Europe, with tractor blockades in Catalonia and actions reported in France and Germany, as unions warn of unfair competition and laxer sanitary standards in Mercosur countries.