In a significant move to facilitate the long-awaited Mercosur trade agreement, the European Union is considering new financial concessions for farmers. These changes aim to secure support from member states ahead of a crucial vote.
EU Voting Mechanism for Mercosur Deal
Under EU regulations, a qualified majority vote is required for the agreement to pass. This necessitates the backing of 15 out of 27 member countries representing at least 65 percent of the population. Italy, due to its substantial population, holds a pivotal position in this decision-making process.
Financial Provisions for Farmers
To alleviate concerns about the impact of a proposed 20% cut to the Common Agricultural Policy (CAP), which traditionally provides subsidies to farmers, the European Commission is proposing reassurances regarding financial support. This funding will be aligned with the upcoming seven-year budget, spanning from 2028 to 2034.
Potential Opposition from France and Poland
Despite these concessions, France and Poland remain the principal adversaries of the Mercosur agreement. Nonetheless, their opposition may be rendered ineffective without Italy’s collaboration, as they would fall short of the votes required to inhibit the deal.
Upcoming Meetings and Decision Timeline
The EU’s farm ministers are scheduled to convene in Brussels for a stocktaking meeting. This session follows protests from European farmers who oppose the Mercosur deal, which has been under consideration for over 25 years.
- Meeting Date: This Wednesday
- Key Officials Involved:
- Maroš Šefčovič – Trade Commissioner
- Christophe Hansen – Agriculture and Food Commissioner
- Olivér Várhelyi – Health and Animal Welfare Commissioner
- Maria Panayiotou – Agriculture Minister of Cyprus
Potential Impact of the Agreement
If the vote succeeds, Commission President Ursula von der Leyen will soon travel to Paraguay to finalize the deal. This agreement aims to establish a free-trade area covering over 700 million people and eliminating tariffs on 90 percent of EU exports.
The European Commission remains optimistic about the agreement’s progression. Chief spokesperson Paula Pinho noted that they are on track for a possible signing in the near future.
The outcome of the vote will determine the future of EU-Mercosur relations and the implications for farmers across Europe.
