The European Commission appears to have won Italy’s crucial support this Tuesday (6) for a free trade agreement with Mercosur, paving the way for the EU to sign the agreement next week.
Last month, Italy and France dashed hopes of a December deal, saying they were not ready to support it until farmers’ fears of an influx of cheap Mercosur commodities, including beef and sugar, were resolved.
However, this Tuesday (6) proposed accelerating support of 45 billion euros for farmers, describing it as a “positive and significant step”.
Italian Agriculture Minister Francesco Lollobrigida said the European Union was now proposing to increase spending on Italian agriculture in 2028-2034, rather than cutting it.
An EU source later said that the .
The Executive Commission, supported by countries such as Germany and Spain, is trying to obtain the large majority of 15 EU members, representing 65% of the EU population, needed to authorize the EU’s signature, possibly as early as January 12.
Agreement would be the biggest in the EU in terms of tariff cuts
They say the deal, which has been 25 years in the making and would be the EU’s biggest in terms of tariff reductions, is vital to boost exports hit by US import duties and to reduce dependence on China by ensuring access to essential minerals.
As Poland and Hungary oppose the agreement and France is still critical, Italy’s position is a determining factor in whether the agreement is signed.
The Commission has held discussions with member states over the past two weeks and the bloc is on track to sign the agreement soon, according to an Executive spokesperson.
The EU Executive has invited all 27 EU Agriculture Ministers to a meeting in Brussels on Wednesday (7).
European Commissioners for Agriculture, Trade and Health are expected to give assurances on future funding for farmers under the European bloc’s Common Agricultural Policy (CAP), including a €6.3 billion crisis fund in the next EU budget.
The Commission’s move to merge regional cohesion funds and CAP money in the next seven-year budget has caused alarm among farming nations.
The Commission will also review import controls, including maximum allowable levels of pesticide residues, according to two EU diplomats.
“It is a critical moment to discuss farmers’ demands,” confirmed one of the diplomats.
