France seeks to delay Mercosur trade deal vote amid farmer protests

By Michel Rose

PARIS, ‌Dec 15 (Reuters) - The French government is seeking to delay a European Union vote to approve an EU trade deal with ‍the Mercosur ‌group of Latin American countries following concerns about its impact on farmers and protests in France.

The deal with Argentina, Brazil, Paraguay and ⁠Uruguay, which was signed a year ago but has yet ‌to be ratified, would open new markets to European exporters badly hit by U.S. tariffs and Chinese competition and give Brussels new trade allies.

But it faces resistance from European farmers who fear that a flood of cheap imports with less stringent environmental rules, especially beef and chicken, could undercut their products in ⁠their home markets.

FRENCH PRIME MINISTER CALLS FOR DELAY

France, Europe's biggest agricultural producer, has sought to forge a coalition of countries that could form a blocking minority to the Mercosur ​deal in any vote in Brussels, and to put pressure on the executive European ‌Commission.

The Commission, which is in charge of negotiating EU trade ⁠deals, offered safeguards for farmers in October but France deemed them "incomplete".

On Sunday, French Prime Minister Sebastien Lecornu urged the EU to delay a vote on the deal scheduled in Brussels before European Commission President Ursula von der Leyen visits Brazil on December 20 to sign ​the pact.

Asked about the French position, the Commission said it still expected to sign the deal by the end of the year, adding in a statement that "in the view of the Commission, signing the deal now is a matter of crucial importance – economically, diplomatically and geopolitically."

Reactions elsewhere in Europe followed existing divisions. Poland, Hungary, Austria and Ireland have expressed sympathy for the French position, while Italy remains ​ambivalent.

"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."

It would take at least four member states representing 35% of EU's population to block the deal.

Much will depend on the position of Italy, whose voting weight could tip the vote. Its industrial confederation favours the deal with Mercosur, but Italian farmers oppose it.

A senior Italian official told Reuters that Italy will decide its position during an EU ⁠summit on Thursday.

FRENCH RESISTANCE

The Mercosur vote comes as Lecornu's minority government is trying to pass a budget in parliament before the end of 2025 and after outbreaks of lumpy skin disease - a highly ​contagious virus - that have led to livestock culls and protests by cattle farmers over what they deem excessive measures.

Opposition to the Mercosur deal runs deep in France, with far-right and far-left forces portraying it as proof Paris bows to Brussels and has abandoned defence of rural interests.

France's three conditions to approve the deal are safeguard clauses that can trigger a brake ‌on imports in case of dumping, "mirror clauses" so that Mercosur imports respect EU pesticide and animal feed rules, and stronger food safety checks.

(Additional reporting by Philip Blenkinsop in Brussels, Angelo Amante in Rome, Barbara Erling in Warsaw and Victoria Waldersee in Madrid, Editing by Timothy Heritage)