Italy and France on Wednesday said they were not ready to back a trade agreement between the European Union and the South American trade bloc Mercosur, dealing a blow to hopes of finalizing the deal in the coming days.
European Commission President Ursula von der Leyen had been expected to fly to Brazil at the end of this week to sign the accord, reached a year ago after a quarter-century of talks with the bloc of Argentina, Bolivia, Brazil, Paraguay and Uruguay.
Germany, Spain and Nordic countries say the agreement will help exports hit by US tariffs and reduce dependence on China by providing access to minerals. Confirming an earlier Reuters report, Italian Prime Minister Giorgia Meloni sided with French President Emmanuel Macron in calling for a delay in approving the deal, which Poland and Hungary also oppose. "The Italian government has always been clear in saying that the agreement must be beneficial for all sectors and that it is therefore necessary to address, in particular, the concerns of our farmers," Meloni told the lower house of Italy's parliament. She told lawmakers it would be "premature" to sign the deal before further measures to protect farmers were finalised, adding the deal needed adequate reciprocity guarantees for the agricultural sector, Reuters reported.
PARIS, ROME DEMAND TOUGHER SAFEGUARDS
France too wants tougher safeguards, including "mirror clauses" requiring Mercosur products to comply with EU rules on the use of pesticide and chlorine and tighter food safety inspections.
"No-one would understand if vegetables, beef and chicken that are chemically treated with products banned in France were to arrive on our soil," French government spokesperson Maud Bregeon told a news briefing. Supporters of the deal say it would not override existing EU regulations on food standards. The European Parliament, Commission and the Council, the grouping of EU governments, are set to negotiate an agreement on Mercosur safeguards later on Wednesday after EU lawmakers backed tightening some controls on imports of some farm products. Meloni's Brothers of Italy party said those controls were still not sufficient to ensure farmers could compete on even terms.
"This does not mean that Italy intends to block or oppose the agreement as a whole ... I am very confident that, come the start of next year, all these conditions can be met," Meloni said.
Latin American officials have grown impatient, with one Brazilian official warning it was "now or never". The Mercosur bloc is pursuing deals with other nations such as Japan, India and Canada.
