EU Council poised to unblock Mercosur trade agreement this Friday; Italy’s vote proves pivotal

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Bandeira ucraniana em frente à Câmara Municipal de Glasgow Foto: Bandeira ucraniana em frente à Câmara Municipal de Glasgow - Foto: EyeEm Mobile GmbH/istock

The European Union Council convenes today, Friday, June 9, 2025, in a pivotal session to determine the future of the long-negotiated free trade agreement between Mercosur and the European Union. A crucial vote is anticipated, potentially allowing the monumental treaty to advance despite strong opposition from key member states. The outcome hinges significantly on Italy’s final position.

Securing approval at this stage demands a qualified majority within the Council: at least 15 of 27 EU countries, representing 65% of the bloc’s population. This stringent requirement highlights the complex diplomatic challenges in advancing the agreement amidst vocal opposition.

If the deal successfully navigates this Council phase, it will then proceed to the European Parliament, requiring a simple majority vote for consent. This subsequent legislative hurdle is generally perceived as less intricate, given fewer public oppositions to the treaty.

Navigating qualified majority and French dissent

France, a prominent EU economy, has consistently voiced strong disapproval of the trade pact. President Emmanuel Macron reiterated his country’s intent to vote against the deal amidst widespread agricultural protests. Farmers, blocking major roads, fear loss of competitiveness and a surge in agricultural imports if the agreement is ratified.

French producers’ concerns stem from potential market disruptions by cheaper agricultural imports. They argue that differing environmental and labor standards in Mercosur countries could disadvantage European farmers.

Poland and Ireland have also expressed reservations, aligning with France’s stance. Combined, these three nations represent approximately 25% of the EU’s population, insufficient to unilaterally block a decision requiring a qualified majority. This shifts focus to other influential states.

Italy’s pivotal role and evolving stance

The diplomatic spotlight has intensely narrowed on Italy, whose significant demographic weight positions it as a crucial swing vote. With about 60 million inhabitants, Italy contributes roughly 13% to the EU’s total population, making its support instrumental for the agreement’s passage.

Initially, Rome appeared generally favorable, viewing the pact as an opportunity for its industrial and service sectors. However, Italy later introduced new requirements during negotiations, at times signaling resistance.

Despite earlier hesitations, recent developments indicate a positive shift. Following weeks of discussions, Italian agricultural representatives confirm their primary concerns are now addressed within the revised agreement terms.

This evolving consensus marks a significant step, potentially clearing a major hurdle for Italy’s final endorsement. The government’s willingness to engage constructively reinforces optimism from Brazilian authorities regarding Italy’s disposition toward the treaty.

European Commission’s incentives for farmers

In a concerted effort to win over hesitant nations and address agricultural anxieties, the European Commission recently unveiled a package of significant financial and trade concessions. This included a proposal to frontload 45 billion euros in EU funds for farmers in the upcoming multiannual budget.

Furthermore, the Commission agreed to reduce import tariffs on specific fertilizers. This policy aims to lessen farmers’ apprehension regarding potential disruptions from Mercosur imports, fostering a more receptive environment for the trade agreement.

Safeguard mechanism: Italy’s core demand

With many general agricultural concerns now largely assuaged, Italy’s remaining primary demand centers on the activation threshold for a critical safeguard mechanism within the Mercosur-EU agreement. This mechanism allows the EU to temporarily suspend preferential tariffs on imports of certain sensitive agricultural products from Mercosur (e.g., poultry or beef) if these imports are deemed harmful to EU producers. The current draft stipulates an investigation can begin if imports increase by an average of 8% over three years. Italy, however, advocates for a reduction to 5%. This lower percentage would provide quicker recourse to protection. Resolution on this specific demand could be the final puzzle piece for Italy’s crucial favorable vote, allowing the agreement to move past the Council stage.

Broader economic outlook and diplomatic optimism

Major European economies like Germany and Spain remain strong proponents of the Mercosur trade deal, viewing it as a significant economic opportunity. They assess that the pact will considerably broaden market access for their industrial and service sectors into a vast South American market of over 280 million consumers, promising enhanced export opportunities and economic expansion.

The Brazilian federal government maintains an optimistic outlook regarding the agreement’s ratification, believing its side has fulfilled all necessary negotiation commitments. Authorities evaluate that European farmer resistances are natural for such comprehensive international trade pacts, and diplomatic signals from Italy are increasingly interpreted as favorable, reinforcing expectations for Rome’s decisive vote in the Council.

Final legislative hurdles

Should the agreement successfully navigate the Council’s stringent qualified majority requirement, its next critical legislative juncture will be the European Parliament. Here, the pact requires a simple majority vote for its ultimate consent and final approval.

This parliamentary phase is generally perceived as less contentious compared to the Council deliberations, primarily because fewer member countries have publicly expressed outright opposition to signing the treaty, suggesting a potentially smoother path to full ratification.

Luís Henrique Costa é jornalista formado pela FMU, editor-chefe e fundador do Mix Vale, portal de notícias em atividade desde 2011. Responde pela direção editorial do veículo, que cobre Brasil e mundo em economia, benefícios sociais, esportes, tecnologia, ciência e entretenimento. Atua na área há mais de 15 anos e lidera uma equipe de cerca de 15 colaboradores.

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