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Exclusive-France and Italy want Mercosur trade deal vote delayed, say sources
Published by Global Banking and Finance Review
Posted on December 15, 2025
4 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 15, 2025
4 min readLast updated: January 20, 2026
France and Italy seek to delay the EU vote on the Mercosur trade deal, risking a 25-year negotiation. The deal faces opposition over agricultural concerns.
By Michel Rose and Angelo Amante
PARIS/ROME, Dec 15 (Reuters) - 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."
BLOCKING MINORITY TAKES SHAPE
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.
FRANCE SAYS SAFEGUARDS ARE INADEQUATE
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.
The Commission, which is in charge of negotiating EU trade deals, offered safeguards this autumn that would allow preferential Mercosur access for some agricultural products to be suspended under certain market conditions.
The trigger for safeguards to be activated would be if the import volumes rose by more than 10% or prices fell by the same amount in one or more EU member countries.
However, France has deemed the safeguards "incomplete".
"Any postponement is a very good signal," said Polish Agriculture Minister Stefan Krajewski.
Volker Treier, from the German Chamber of Commerce DIHK, said: "The EU must not miss the opportunity to strengthen ties with key trade and raw material partners in South America and to reduce existing trade barriers."
(Additional reporting by Philip Blenkinsop in Brussels, Barbara Erling in Warsaw and Victoria Waldersee in Madrid; writing by Michel Rose and Richard Lough; Editing by Timothy Heritage, Catherine Evans, Aidan Lewis)
A blocking minority in the EU requires support from at least four member states representing 35% of the EU's population to prevent a decision from being adopted.
Agricultural safeguards are protective measures included in trade agreements to shield domestic farmers from potential negative impacts of increased imports.
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and managing the day-to-day operations of the EU.
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