Italy pressures EU over farmer safeguards in Mercosur deal
Italian Prime Minister Giorgia Meloni announced that Rome will not support the EU-Mercosur agreement without strong safeguards for EU farmers. The Italian government emphasizes the strategic importance of relationships with the South American bloc but insists on protection for the agricultural sector.
On Friday, Ursula von der Leyen, the President of the European Commission, announced the end of negotiations between the EU and the Mercosur bloc, which includes Argentina, Brazil, Paraguay, Uruguay, and Bolivia. The agreement involves free trade, against which governments and farmers from countries including Poland and France are protesting.
Prime Minister Giorgia Meloni declared that Italy would withhold support for the free trade agreement with Mercosur countries unless strong safeguards for EU farmers are included, a statement made before the announcement by the EU Commission President.
Italy has aligned with countries such as France and Poland in opposing the agreement in its current form.
For the agreement to come into effect, it must be ratified by the European Union. There are two possible paths: either the agreement will require ratification by all national parliaments, or it will need to be approved by the European Parliament and member countries in the EU Council.
In the second scenario, the states would decide by a qualified majority, meaning agreement from 15 of the 27 countries representing at least 65% of the EU population.
Details of the EU-Mercosur agreement
The European Commission argues that the agreement addresses the concerns of European farmers. The agreement imposes limits on the import of beef, poultry, and sugar and also allows for the suspension of imports in case of market disruptions.
The protective restrictions forecast that the EU will annually receive about 218 million pounds of beef from Mercosur countries, which is 1.6% of the total consumption in the Union. Additionally, tariffs on beef will be reduced to 7.5% but not eliminated. Restrictions also apply to poultry and sugar.
The agreement features a mechanism allowing for the suspension of agricultural product imports if disruptions exist in the European market. Exemptions from tariffs and quotas on agricultural products from Mercosur countries will be gradually implemented over seven years.
