whatsapp

Italy emerges as key player as Mercosur trade deal hangs in the balance

  • 0
  • 458
/media/TEM_4.webp © Image Copyrights Title

Italy has emerged as a pivotal player in the fate of the long-delayed EU–Mercosur trade agreement, as divisions among member states leave Rome’s position potentially decisive ahead of an expected signature later this month.

European Commission President Ursula von der Leyen is due to travel to Brazil on December 20 to finalise the agreement with Mercosur countries, Argentina, Brazil, Paraguay and Uruguay, which would create a free-trade area covering nearly 700 million people. However, opposition from several EU countries has raised doubts over whether the deal can secure the backing required for ratification.

France, under pressure from farmers concerned about competition from Latin American agricultural imports, is leading resistance to the agreement and has called for a postponement of the member states’ vote scheduled for this week. Hungary, Poland and Austria have also expressed opposition. Belgium has indicated it will abstain, while Ireland and the Netherlands have yet to formally state their position.

Under EU rules, the deal requires a qualified majority, while a blocking minority of at least four countries representing 35 per cent of the EU population could prevent its approval. With France already opposed, Italy’s stance has taken on outsized importance.

Diplomatic sources say Rome’s prolonged silence has placed it firmly in the spotlight. One diplomat told Euronews that Italy’s position leaves it exposed, but potentially well placed to seek concessions if it chooses to play a mediating role.

Italy remains internally divided. The country’s largest farmers’ association, Coldiretti, continues to oppose the agreement, warning that safeguards proposed by the European Commission would be too slow to protect EU markets in the event of a surge in Mercosur imports.

The Commission has proposed a monitoring mechanism designed to respond to market disruptions, a measure that will be put to a vote by EU lawmakers at a plenary session in Strasbourg on Tuesday.

At the same time, Italy is the EU’s second-largest exporter to Mercosur countries, placing Prime Minister Giorgia Meloni under pressure from industrial groups, including Confindustria, which see the agreement as an opportunity to expand exports amid slowing global trade.

Agriculture Minister Francesco Lollobrigida acknowledged the trade-offs during a recent visit to Brussels, saying that several industrial sectors and parts of Italian agriculture, including wine and cheese producers, would benefit from the deal, while other sectors could face losses.

Italy’s government has so far refrained from taking a definitive position. Lollobrigida said Rome has sought since 2024 to balance competing interests while maintaining strategic ambiguity over its stance.

Supporters of the agreement see Italy as a potential kingmaker, particularly as the EU seeks to secure new trade partnerships amid rising protectionism in the United States and China. A senior EU diplomat from a pro-deal country said efforts are underway to ensure the conditions are in place for von der Leyen’s planned visit to Brazil.

However, uncertainty remains high. Diplomats say there is reluctance to schedule a vote that could fail, and Italy’s continued silence is unsettling supporters of the deal. One diplomat familiar with the negotiations said the situation remains difficult, with no clear outcome in sight.

Related Posts
© US Consumer Sentiment Hits Record Low as Inflation Fears Surge Amid Iran War

US Consumer Sentiment Hits Record Low as Inflation Fears Surge Amid Iran War

Consumer confidence in the United States has fallen to its lowest level on record, as rising inflation fears and geopolitical tensions linked to the Iran conflict continue to pressure household sentim...

  • 888
© Global Markets Rise as Oil Prices Edge Higher Ahead of US-Iran Ceasefire Talks

Global Markets Rise as Oil Prices Edge Higher Ahead of US-Iran Ceasefire Talks

Global financial markets showed cautious optimism on Friday, with equities advancing and oil prices ticking higher as investors awaited critical ceasefire talks between the United States and Iran sche...

  • 894
© Europe Energy Prices Seen Staying High Despite Iran Ceasefire

Europe Energy Prices Seen Staying High Despite Iran Ceasefire

Energy prices across Europe are expected to remain elevated despite a ceasefire between the United States and Iran, due to ongoing supply disruptions and global market pressures. The International ...

  • 603
© New Polymarket Accounts Profit Big on US-Iran Ceasefire Bets, Raising Insider Trading Concerns

New Polymarket Accounts Profit Big on US-Iran Ceasefire Bets, Raising Insider Trading Concerns

A group of newly created accounts on Polymarket made substantial profits by placing timely bets on a US-Iran ceasefire just hours before the announcement by Donald Trump, prompting concerns over poten...

  • 483
© Greek and Liberian Ships First to Transit Strait of Hormuz After Ceasefire

Greek and Liberian Ships First to Transit Strait of Hormuz After Ceasefire

A Greek-owned bulk carrier and a Liberia-flagged vessel have become the first ships to transit the Strait of Hormuz following a ceasefire between the United States and Iran. According to maritime t...

  • 602
© US and Iran Agree to Two-Week Ceasefire, Strait of Hormuz to Reopen

US and Iran Agree to Two-Week Ceasefire, Strait of Hormuz to Reopen

The United States and Iran have agreed to a two-week ceasefire, pausing further military action and allowing the reopening of the Strait of Hormuz. Donald Trump said the United States would suspend...

  • 622
© US Vice President JD Vance Visits Hungary to Back Orbán Ahead of Elections

US Vice President JD Vance Visits Hungary to Back Orbán Ahead of Elections

US Vice President JD Vance arrived in Hungary on Monday in a move widely seen as a show of support for Prime Minister Viktor Orbán ahead of the country’s upcoming parliamentary elections. Vance is ...

  • 392
© Spain Breaks Jobs Record with Over 22 Million Social Security Contributors

Spain Breaks Jobs Record with Over 22 Million Social Security Contributors

Spain’s labour market reached a historic milestone in March, with the number of Social Security contributors surpassing 22 million for the first time, according to official data released on Monday. ...

  • 413
© French-Linked Ship Crosses Strait of Hormuz in First Western European Transit Since Iran War

French-Linked Ship Crosses Strait of Hormuz in First Western European Transit Since Iran War

A container vessel linked to France has successfully crossed the Strait of Hormuz, marking the first known transit by a Western European-affiliated ship since the outbreak of the Iran conflict in late...

  • 317
© Egg Prices Surge Across Europe Ahead of Easter, Spain Sees Sharpest Rise

Egg Prices Surge Across Europe Ahead of Easter, Spain Sees Sharpest Rise

Egg prices across Europe have surged significantly ahead of the Easter season, with inflation in the category far outpacing overall consumer price growth, according to recent data from Eurostat and Eu...

  • 539
© French Vessel Crosses Strait of Hormuz in First Western European Transit Since Iran Conflict

French Vessel Crosses Strait of Hormuz in First Western European Transit Since Iran Conflict

A container vessel linked to French shipping group CMA CGM has crossed the Strait of Hormuz, marking the first known transit by a Western European-associated ship since the outbreak of the Iran confli...

  • 432
© Germany and Italy Push EU ‘Kill Switch’ Proposal for Global Stablecoins

Germany and Italy Push EU ‘Kill Switch’ Proposal for Global Stablecoins

Germany and Italy have proposed sweeping new measures to regulate global stablecoins within the European Union, including a mechanism that would allow authorities to shut down certain digital currenci...

  • 323
© Ultra-Rich Hold $2.84 Trillion Untaxed Wealth, Surpassing Assets of World’s Poorest Half

Ultra-Rich Hold $2.84 Trillion Untaxed Wealth, Surpassing Assets of World’s Poorest Half

The world’s wealth inequality has reached a striking new milestone, with the top 0.1% holding an estimated $2.84 trillion in untaxed offshore wealth—surpassing the combined assets of the poorest half ...

  • 514
© Iran War Pressures Germany Economy as Growth Forecast Slashed and Deficit Rises

Iran War Pressures Germany Economy as Growth Forecast Slashed and Deficit Rises

Germany’s economic outlook has deteriorated sharply as the ongoing Iran conflict adds fresh pressure to an already fragile recovery, prompting leading research institutes to significantly cut growth p...

  • 470
© Unilever and McCormick Near Mega Deal to Form Global Food Giant

Unilever and McCormick Near Mega Deal to Form Global Food Giant

Global consumer goods leader Unilever is moving closer to a landmark agreement with U.S.-based McCormick & Company to restructure its food division, in a deal that could reshape the global packaged fo...

  • 416
© TotalEnergies Earns $1 Billion Profit Amid Middle East Oil Disruptions

TotalEnergies Earns $1 Billion Profit Amid Middle East Oil Disruptions

French energy giant TotalEnergies is reported to have earned more than $1 billion in profit after aggressively trading Middle Eastern crude oil during disruptions caused by the ongoing Iran conflict. ...

  • 372
© European Markets Mixed as Iran Tensions Drive Oil Prices Higher

European Markets Mixed as Iran Tensions Drive Oil Prices Higher

European markets traded mixed on Monday as rising oil prices and ongoing tensions linked to the Iran conflict continued to weigh on investor sentiment. Major indices showed varied performance durin...

  • 401
© SpaceX IPO: Elon Musk Plans Up to 30% Share Allocation for Retail Investors

SpaceX IPO: Elon Musk Plans Up to 30% Share Allocation for Retail Investors

Elon Musk is reportedly planning to allocate up to 30% of shares in SpaceX’s upcoming initial public offering (IPO) to retail investors, marking a major shift from traditional Wall Street practices. ...

  • 359
© New Poverty Measure Shows US Lagging Behind Europe Despite Higher Incomes

New Poverty Measure Shows US Lagging Behind Europe Despite Higher Incomes

A new method of measuring poverty suggests that the United States is falling behind major European economies, despite having higher average incomes. The research, developed by an Oxford University ...

  • 467
© BYD Profit Falls 19% Amid Price War Despite Overtaking Tesla in EV Sales

BYD Profit Falls 19% Amid Price War Despite Overtaking Tesla in EV Sales

BYD reported a 19% decline in annual profit for 2025, highlighting growing pressure from intense competition in China’s electric vehicle market, even as it strengthened its lead over Tesla in global s...

  • 453
Commnets 0
Leave A Comment