Italy’s yes to the free trade agreement with Mercosur —at the ends in the final stretch of negotiations that have lasted more than a quarter of a century—has been fundamental in paving the way for the official signing of the pact in Paraguay, on January 17. Rome, under the leadership of the far-right Giorgia Meloni, has gone from being a reluctant actor to becoming one of the key pieces in unlocking the European consensus towards the creation of , with a potential of more than 720 million consumers. The 27 countries of the European Union will sign the agreement with four countries in South America (Brazil, Argentina, Uruguay and Paraguay).
Meloni’s approval was conditional on obtaining key European guarantees for the Italian agricultural sector, such as the creation of a protection mechanism for sensitive products, a compensation fund for possible market imbalances, a reinforcement of phytosanitary controls at European borders, the reorganization of the spending of Common Agricultural Policy (CAP) funds or the blocking of fertilizer prices. Although, as the Prime Minister has explained, Italy with the South American bloc and has warned that it will remain “on alert” and will closely monitor that the commitments reached are met. “We could not say yes to Mercosur to the detriment of the excellence of our products,” Meloni explained on Friday at his annual press conference. And he added: “We have always said that we are in favor of the pact, but only when there are sufficient guarantees for our farmers. In light of the guarantees we have obtained, we have given our support to the agreement.”
The Italian Government recalls that it is not unreserved support, but is subject to the safeguards really working, not just on paper. And he insists: promises are not enough; They demand “strict controls” and rigorous compliance with sanitary and phytosanitary standards so that imported products do not enter into unfair competition with national production.
Giorgia Meloni has also framed the debate within a broader reflection on EU trade policy. In his opinion, the problem is not simply opting for free trade or protectionism, but rather the contradiction of imposing within the European market while signing agreements with partners that operate under much less demanding regulatory frameworks. “This could be suicidal,” the Italian Prime Minister has warned. And he has clarified that his government is favorable to free trade agreements, but accompanied by a review of internal regulatory burdens.
During much of the negotiation process with Mercosur, especially in recent times, the Italian Government has maintained a position of caution, sometimes skeptical, aligned with the concerns of its agricultural sector and the food industry, which have great weight in the transalpine country both from an economic point of view. Rome warned that a rapid opening of the market could increase competition from South American products with lower costs and different standards, which would especially affect livestock farmers and producers of goods with a designation of origin.
However, far from limiting himself to a political “no”, Meloni opted for a negotiation strategy that consisted of conditioning Italian support on the incorporation into the pact of certain demands to protect national production.
This position, which has been partly shared by other partners such as France, increased political pressure in Brussels and forced the European Commission to review some chapters of the principle of agreement.
hinge paper
Instead of exercising a frontal veto, Rome opted to use its political weight to sit at the table and modify the content of the agreement. His final yes made it possible to reach the qualified majority of member states necessary to support the trade agreement with the South American bloc. Meloni has played a key pivotal role and has transformed Italian reserves into influential capacity in Europe. Its strategy has made it possible to obtain relevant concessions for European agriculture and, at the same time, unblock the geopolitics of the European Union.
The result of the negotiations has been a package of commitments that has allowed Italy to lift its resistance and, after that turn, left France as the main large minority country within the .
Among the concessions that Italy demanded were measures to make fertilizers cheaper by temporarily suspending tariffs on imports of these products; the implementation of emergency mechanisms to stop imports if some agricultural and livestock markets, such as meat or dairy, suffer serious disruptions when the pact comes into force; greater demand for sanitary, phytosanitary and environmental standards, with stricter control procedures for imported products; or the commitment to allocate financial resources to compensate producers possibly affected by the opening of the market, to guarantee a financial “cushion” against the possible impact of South American imports. Added to this is the advancement and reinforcement of CAP payments, starting in 2028, for farmers.
“Italy has made agriculture once again the center of the debate both in Italy and in the European Union. Today they are once again recognized as guardians of the territory and the environment, and guarantors of our sovereignty and food security,” celebrated the Italian Minister of Agriculture and Food Sovereignty, Francesco Lollobrigida. And he has insisted on the need to guarantee the “principle of reciprocity”, which according to him “must apply to all commercial exchanges with third countries”, not only with Mercosur. “Playing by the same rules is the basis of the competitiveness of our companies,” said the minister.
For Meloni, they have been key to presenting the agreement as a balanced commitment between trade openness and protection of national production. Without the Italian turn, the pact would hardly have gathered the support of the countries and the demographic weight necessary to overcome the opposition of other States such as France, Poland, Hungary or Ireland.
A skeptical reception
In Italy, Meloni’s last-minute accession to the agreement has not been received with particular enthusiasm, neither within the government coalition, nor in the opposition, nor by farmers, who complain of the risk of consolidating “an obvious asymmetry.” “While Italian and European agricultural companies are required to comply with very strict standards in terms of environmental sustainability, food safety and workers’ rights, the same standards do not apply to imports from Mercosur countries (Brazil, Argentina, Uruguay and Paraguay),” said Confagricoltura, one of the main farmers’ associations in the transalpine country.
Meloni’s partner in the Government, has announced that it will maintain its historic position against the agreement. “We are not going to overthrow the Government for this, but ours is not emphatic, on our part there is great dissatisfaction,” said the League senator and former Minister of Agriculture Gian Marco Centinaio, who has demonstrated alongside farmers in the streets of Milan.
Some opposition parties, such as the Democratic Party, accuse the government of turning the negotiation into a political achievement, but without sufficient guarantees for the industry and vulnerable sectors.
On the other hand, a large part of industrial and manufacturing organizations such as Confindustria have shown their satisfaction with the approval of the agreement. Several voices from the agri-food sector have also applauded it, especially from the wine world.
