Germany 'very confident Italy will now agree' to EU-Mercosur trade deal

The German government said Wednesday that it expected Italy to approve the EU trade deal with the South American Mercosur bloc, which Brussels hopes to sign next week.

Despite Italy previously expressing concerns over the deal's possible impacts on the European Union's farming sector, German government spokesman Stefan Kornelius told reporters that "we are very confident that Italy will now agree to this Mercosur agreement."

Plans to seal the accord in December ran into a late roadblock as EU heavyweights Italy and France demanded a postponement.

The EU's agriculture ministers are to meet later Wednesday to try to allay concerns from the agricultural sector over the deal.

On Tuesday, the European Commission said it would tweak its budget proposal for 2028-2034 to allow farmers early access to around 45 billion euros (US$53 billion).

The accord, more than 25 years in the making, would create the world's biggest free-trade area, boosting trade between the 27-nation EU and the Mercosur bloc comprising Brazil, Paraguay, Argentina and Uruguay.

But many European farmers fear they will be undercut by a flow of cheaper goods from agricultural giant Brazil and its neighbours.

– TIMES/AFP