PARIS/ROME--Italy and France want a final European Union vote on the Mercosur trade deal to be delayed, two sources familiar with the discussions said, a move which risks derailing an accord that has taken 25 years to negotiate.
The deal with the Mercosur group of Latin American nations is the largest brokered by the EU in terms of tariff relief, and proponents say it offers a route away from reliance on China and relief from the impact of U.S. President Donald Trump's tariffs.
Getting a deal done this month is seen by some as a test of Europe's ability to act as a unified bloc, days after Trump hit out at EU leaders for being "weak" at a time when they are searching for agreement on how to bolster financing for Ukraine.Germany, Spain and Nordic countries are strong supporters of the deal.
But critics of the accord worry it gives away too much to Mercosur members Argentina, Brazil, Paraguay and Uruguay and would result in cheap South American commodities flooding the European market to the detriment of European farmers. France has been trying to rally other EU countries to form a blocking minority against the deal negotiated by the European Commission. It wants more robust safeguards to protect farmers added to the accord.
On Sunday, the French government announced it was seeking to delay the EU vote to approve the deal in order to obtain "legitimate protections" for farmers.Asked about the French position, the Commission said it still expected to sign the deal by the end of the year, adding that "in the view of the Commission, signing the deal now is a matter of crucial importance – economically, diplomatically and geopolitically."
Denmark, which holds the EU's rotating presidency, will now have to decide whether to press ahead with a vote this week as planned. Danish representatives in Brussels did not immediately respond to a request for comment.
If Denmark defies Paris and Rome, the deal could be shot down. A blocking minority requires support from at least four member states representing 35% of the EU's population.
Poland and Hungary oppose the Mercosur trade deal, Austria's government is bound by law to oppose the accord, while Ireland has sympathy for the French concerns.A third source said that it looked like France would have a blocking minority if Denmark proceeded.
The French presidency and Italian Prime Minister Giorgia Meloni's office did not immediately respond to requests for comment on Monday.
A broad majority of EU members need to vote in favour of the deal to allow Commission President Ursula von der Leyen to sign the deal. The accord, agreed a year ago, would open new markets to European exporters badly hit by U.S. tariffs and Chinese competition and give Brussels new trade allies."If we don’t sign Mercosur in the next days it will be dead," one EU diplomat cautioned.
"If we can’t agree on Mercosur we don’t need to talk about European sovereignty anymore. We will make ourselves geopolitically irrelevant," they added.
