BY EMMANUEL OGBONNA
Italy on Friday threw its weight behind a long-stalled European Union free trade agreement with five South American nations, delivering a decisive boost to a deal that has been under negotiation for more than a quarter of a century and clearing the way for its possible signing as early as next week.
Rome’s backing was widely seen as pivotal in the effort led by European Commission President Ursula von der Leyen to secure enough support among EU member states for the accord with the Mercosur bloc, which includes Brazil, Argentina, Bolivia, Paraguay and Uruguay. With Italy now on board, the Commission is poised to move forward, potentially signing the agreement during a regional meeting in Paraguay. The European Parliament must still approve the pact before it can enter into force.
Italy confirmed its support on Friday, with Foreign Minister Antonio Tajani welcoming the decision as a major economic opportunity. He described the agreement as “good news for Italy,” saying it would strengthen export growth and help advance the country’s long-term trade ambitions.
“This agreement is destined to boost our exports, with the goal of reaching 700 billion euros in exports,” Tajani said in a social media post. He acknowledged the negotiations had been lengthy and complex, but emphasized that Italy had secured safeguards for domestic agriculture, particularly with regard to production standards.
Prime Minister Giorgia Meloni said she had never held ideological objections to the Mercosur agreement, framing Italy’s position as conditional rather than oppositional. Speaking at a press conference, she said Rome’s support hinged on ensuring adequate protections for Italian farmers and food producers.
“We have always said we would be in favor of it when there are sufficient guarantees for our farmers,” Meloni said. “The agreement’s potential is good, but not at the expense of the excellence of our products.”
Support from Italy strengthens momentum behind what would become one of the world’s largest free trade zones, spanning around 780 million people from South America to Eastern Europe and accounting for roughly a quarter of global economic output. Proponents argue the deal would significantly reduce tariffs, open markets for industrial goods and agricultural products, and deepen political and economic ties between the two regions.
German Chancellor Friedrich Merz described the agreement as a turning point for Europe’s global economic strategy. In a statement, he called it “a milestone in European trade policy” and said it sent a strong signal about Europe’s capacity to act independently on the world stage.
“With this agreement, we are strengthening our economy and trade relations with our partners in South America,” Merz said. “That is good for Germany and for Europe.”
Beyond economics, the deal carries geopolitical weight for Brussels at a time of global trade turbulence. EU officials see it as a diplomatic success that contrasts sharply with Washington’s increasingly confrontational trade posture and Beijing’s use of export controls and economic leverage.
“Given Trump’s policies of isolating the U.S. from the rest of the world, it is imperative for the EU to lead trade integration at the global level and look for partners elsewhere,” said Antonio Fatas, a macroeconomist at INSEAD. He said the agreement reflects Europe’s effort to position itself as a stabilizing force in global trade.
The push to finalize the Mercosur pact has gained urgency as Brussels seeks to reduce its reliance on the U.S. market following a series of tariff disputes. In recent years, the EU has concluded trade agreements with countries such as Japan and Indonesia and is working toward a similar pact with India.
A delay in December in finalizing the Mercosur agreement had angered Brazilian President Luiz Inácio Lula da Silva and raised concerns among trade experts that another setback could seriously damage the EU’s credibility as a negotiating partner.
“For Europeans, concluding free trade agreements with new partners is among the best responses to U.S. tariffs, rising protectionism and trade tensions with China,” said Agathe Demarais of the European Council on Foreign Relations. She added that the Mercosur countries could also help diversify Europe’s access to critical raw materials, reducing dependence on China.
Despite growing support, the agreement remains deeply controversial. France and Poland have led opposition, with farmers staging protests across Europe, blocking roads with tractors from Brussels to Athens. Austria, Hungary and Ireland have also voiced resistance.
Irish Prime Minister Micheál Martin said during a visit to China this week that Dublin lacked confidence Irish farmers would not be undercut by imports from South America, reflecting widespread concerns about competition from lower-cost agricultural producers.
French President Emmanuel Macron and Martin have both said internal negotiations within the EU produced additional safeguards for farmers, but acknowledged these changes have not been sufficient to neutralize domestic political pressure.
Macron said France secured several concessions, including an “emergency brake” allowing the EU to restrict imports if prices are undercut by 5% or more, stronger alignment of food safety rules between the EU and Mercosur countries, and expanded inspections of agricultural imports at ports and beyond. Still, he has argued that the economic benefits of the agreement are modest compared with the risks to European agriculture.
According to the French government, the deal would add an estimated 77 billion euros to the EU economy by 2040 — roughly half a percent of total GDP — a figure critics say does not justify potential damage to farming communities.
Environmental groups and Green lawmakers have also threatened legal action, warning the agreement could accelerate deforestation in the Amazon and undermine Europe’s climate commitments. Frances Verkamp, a trade campaigner at Friends of the Earth Europe, described the deal as “toxic,” accusing Brussels of prioritizing global power politics over environmental protection and social welfare.
Despite the resistance, Italy’s endorsement marks a turning point, dramatically increasing the likelihood that the EU and Mercosur will finally bring one of the world’s longest-running trade negotiations to a close.
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