The European Commission says the agreement, which has been 25 years in the making and will be the largest in the EU in terms of tariff reductions, is crucial to boost exports hurt by US import taxes and to reduce dependence on China by providing access to important minerals.
Active supporters of the agreement include Germany and Spain, with Poland and Hungary key opponents. France is critical, and Italy is demanding additional guarantees and concessions.
Against this background, EU agriculture ministers will meet urgently to discuss the agreement with Mercosur on January 7, reports Reuters. The main task is to convince Italy to support the agreement.
In December, it was Italy and France who scuppered the European Commission’s plans to conclude the agreement by the end of 2025. They demand additional measures to support farmers who fear an influx of cheap goods from Mercosur.
That is why the European commissioners for agriculture, trade and health will attend the meeting alongside the agriculture ministers. They will present a program of funding for farmers under the EU’s Common Agricultural Policy, including a €6.3 billion crisis fund. Additional import controls are also expected to be introduced, including allowable maximum levels of pesticide residues. It is believed that this measure will significantly limit the influx of products from Mercosur countries.
