Brussels: Europe and the Arabs

French President Emmanuel Macron announced that Paris will oppose the trade agreement with Mercosur countries, with a crucial vote scheduled for Friday in Brussels.

France is poised to vote against the Mercosur agreement in a forthcoming vote among EU member states, following months of efforts by Paris to build a blocking minority to prevent the controversial trade deal from being passed.

Indications suggest that Italy's potential support for the agreement could deliver a severe diplomatic blow to President Macron, potentially undermining his strategy to obstruct the agreement within EU institutions.

Macron wrote in a post on the X platform: "France has decided to vote against the signing of the agreement between the European Union and Mercosur countries."

He added that "the EU-Mercosur agreement is an agreement from another era, negotiated for a long time on outdated foundations," arguing that its economic benefits "will be limited for French and European growth."

He continued: "This agreement does not justify jeopardizing sensitive agricultural sectors, which are a cornerstone of our food sovereignty." Background to the Agreement and the European Dispute

The Mercosur agreement was reached in December 2014, when European Commission President Ursula von der Leyen signed it with Argentina, Brazil, Paraguay, and Uruguay. The aim was to create a free trade area encompassing approximately 700 million people across the Atlantic Ocean, following more than 25 years of negotiations.

France opposed the agreement at various stages, citing concerns about unfair competition from imports from Latin America, particularly in the agricultural sector, amidst strong pressure from French farmers.

In contrast, supporters of the agreement, primarily Germany and Spain, pushed for a swift signing, arguing that it would open new markets for European exports in light of escalating global geoeconomic tensions.

Italy in a Decisive Position

The agreement was scheduled to be signed last month, but the European summit postponed the move after France and Italy expressed reservations. The European Commission indicated at the time that these concerns could be addressed, with the signing expected to proceed in January. In recent weeks, Paris has intensified its efforts to form a blocking minority, successfully securing the support of Poland, Hungary, Ireland, and possibly Austria. However, Italy's position remains the deciding factor ahead of a vote expected on Friday at a meeting of EU ambassadors in Brussels.

Following a series of concessions by the European Commission, including strengthening mechanisms for monitoring market disruptions and providing early payments to farmers, Italy appears closer to the pro-agreement camp.

If the agreement secures qualified majority support, it will mark the first time France has been bypassed in a vote within the Council of the European Union, representing a further political blow to Macron at a time when he is facing a deep domestic political crisis.