France and Italy unite to block EU-Mercosur trade deal in current form

France has declared its firm opposition to the European Union's proposed trade agreement with the South American economic bloc Mercosur, threatening to block any attempt to "force" the deal through. The stance aligns with a similar announcement from Italy, creating a significant hurdle for one of the world's largest prospective trade pacts.

Macron's demands and political alliance

Speaking at a Cabinet meeting on Wednesday, President Emmanuel Macron argued there remains "insufficient clarity" on critical conditions France has demanded. These include "mirror measures" to ensure imported products meet EU environmental and health standards, a robust safeguard clause, and effective controls. Government spokesperson Maud Bregeon conveyed the president's position, stating France would "oppose very firmly" if EU institutions tried to override these concerns. She noted Italy's parallel opposition is "proof" France is "not alone," highlighting an alliance of "major European countries."

Italy's parallel stance and call for reciprocity

Italian Prime Minister Giorgia Meloni echoed Macron's reservations in a speech to lawmakers ahead of an EU summit. She confirmed Italy would not sign the agreement in its current form, deeming it "still premature." Meloni emphasized the need for additional "reciprocity guarantees" to shield European farmers from potential market disruption and unfair competition. Despite her objections, she expressed optimism that these conditions could be negotiated and met early next year, leaving the door open to a revised deal.

Implications for EU trade policy and global competition

The joint Franco-Italian position underscores the deep political sensitivity surrounding agricultural trade within the EU. It reflects a protectionist impulse aimed at safeguarding a powerful domestic farming lobby from competition with major agricultural exporters like Brazil and Argentina. This internal EU deadlock is observed by other major economies, including Türkiye, which has its own comprehensive trade network and understands the complex balance between open markets and protecting strategic domestic sectors.