Following France's demand to halt the signing, the EU has proposed postponing its long-negotiated trade pact with Mercosur until early January 2025 to overcome opposition from France and newly reluctant Italy. New safeguards aim to protect European farmers, amid protests and support for diversifying trade.
The planned signing this weekend in Brazil has been pushed to January due to France's ongoing refusal—deemed 'insufficient' by Emmanuel Macron to shield farmers—and Italy's last-minute doubts under Giorgia Meloni, who faces pressure from her agricultural base and figures like Matteo Salvini.
In a call with Brazilian President Luiz Inácio Lula da Silva, Meloni stated she is not against the deal but needs time to address farmer concerns: "If we can be patient for a week, 10 days, or at most a month, Italy will support the agreement." An Italian official note confirmed she will sign once responses for farmers are secured.
The EU Council and Parliament approved new safeguards on Wednesday: a mechanism to suspend tariff benefits if 'serious distortions' occur in beef, poultry, or sugar sectors. These do not require Mercosur approval. Commission President Ursula von der Leyen emphasized diversifying trade amid threats like U.S. protectionism and China dependencies. Supporters include Spain's Pedro Sánchez, Germany's Friedrich Merz, and European Council President António Costa.
The delay coincides with major farmer protests in Brussels, paralyzing the city with tractors against the deal and CAP cuts. BusinessEurope called the postponement 'bad news for businesses.' While a qualified majority is needed, further concessions to Italy, such as agricultural funds, may be key.
