EU delays trade deal with South America’s Mercosur bloc as farmers protest

EU delays Mercosur trade deal until January amid farmer protests and opposition from France and Italy.

The European Union has delayed a massive free-trade deal with South American countries amid protests by EU farmers and as last-minute opposition by France and Italy threatened to derail the agreement.

European Commission chief spokesperson Paula Pinho confirmed on Thursday that the signing of the trade pact between the EU and South American bloc Mercosur will be postponed until January, further delaying a deal that had taken some 25 years to negotiate.

Commission President Ursula von der Leyen was expected to travel to Brazil on Saturday to sign the deal, but needed the backing of a broad majority of EU members to do so.

The Associated Press news agency reported that an agreement to delay was reached between von der Leyen, European Council President Antonio Costa and Italian Prime Minister Giorgia Meloni – who spoke at an EU summit on Thursday – on the condition that Italy would vote in favour of the agreement in January.

French President Emmanuel Macron had also pushed back against the deal as he arrived for Thursday’s summit in Brussels, calling for further concessions and more discussions in January.

Macron said he has been in discussions with Italian, Polish, Belgian, Austrian and Irish colleagues, among others, about delaying the signing.

“Farmers already face an enormous amount of challenges,″ the French leader said.

The trade pact with Argentina, Brazil, Bolivia, Paraguay and Uruguay would be the EU’s largest in terms of tariff cuts.

But critics of the deal, notably France and Italy, fear an influx of cheap commodities that could hurt European farmers, while Germany, Spain and Nordic countries say it will boost exports hit by United States tariffs and reduce reliance on China by securing access to key minerals.

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The EU-Mercosur agreement would create the world’s biggest free-trade area and help the 27-nation European bloc to export more vehicles, machinery, wines and spirits to Latin America at a time of global trade tensions.

Al Jazeera’s Dominic Kane, reporting from Berlin, said Germany, Spain and the Nordic countries were “all lobbying hard in favour of this deal”. But ranged against them were the French and Italian governments because of concerns in their powerful farming sectors.

“Their worry being that their products, such as poultry and beef, could be undercut by far cheaper imports from the Mercosur countries,”