EU races to win over Italy on Mercosur trade deal, says EU lawmaker

Germany and the EU executive have been making a last-ditch attempt to convince Italy to back a free trade agreement with South American bloc Mercosur, which will falter if not signed soon, a leading EU lawmaker said on Tuesday.

Some 25 years in the making, a trade pact with Mercosur would be the EU's largest in terms of tariff cuts.

Germany, Spain and Nordic countries say it will help exports hit by U.S. tariffs and reduce dependence on China by providing access to minerals. But critics fear cheap commodities flooding the market, including beef to the detriment of European farmers.

With Poland outright opposed and France pushing for a delay, lobbying has focussed on Italy. The head of the European Parliament's trade committee, Bernd Lange, told Reuters that included a meeting late on Monday between Italian Prime Minister Giorgia Meloni, German Chancellor Friedrich Merz and European Commission President Ursula von der Leyen.

"If Italy is not on board, it's over. I hope today we will see a little clearer," he said in an interview.

Meloni and French President Emmanuel Macron have apparently agreed on delaying a vote, according to two sources familiar with the discussion.

SIGN THIS WEEKEND?

The EU and Mercosur bloc of Argentina, Brazil, Paraguay and Uruguay agreed an accord in principle last December.

Von der Leyen aims to go to Brazil to sign it this weekend, but needs approval from the Council, the grouping of EU governments. To block it requires opposition of four EU nations making up 35% of the population and diplomats believe it is inevitable another nation, such as Hungary, will dissent.

Lange said he believed that the deal would collapse if not signed this year.

"Mercosur countries are running out of patience. If it is not possible to sign now the window of opportunity will be closed and they will look towards countries we don't like," he said.

"We are on track but I have my doubts about what is happening in the Council."

EU lawmakers were due to vote later on Tuesday on strengthening safeguards for farmers in a potential deal with Mercosur - a key lobbying point for France.