France continues to refuse to back a key EU trade deal with Latin American bloc Mercosur, despite pressure from Berlin, Brussels and the fallout from Donald Trump's trade war triggered by high US tariffs, POLITICO reported. The deal would create a common market for nearly 800 million people and help the EU replace export markets in the U.S. that are moving toward protectionism.
Incoming German Chancellor Friedrich Merz claimed that French President Emmanuel Macron was reconsidering his opposition and was leaning towards ratification, which Paris denied. "We have not changed our position, the agreement remains unacceptable," a source from the Elysee Palace told the server on condition of anonymity. France, a long-time opponent of the deal, fears an influx of agricultural products from Argentina and Brazil that would undermine the position of French farmers.
The agreement reached by Ursula von der Leyen and Mercosur leaders in Montevideo in December is due to be put to a vote in the autumn. France has promised to vote against it, but its chances of forming a blocking minority are diminishing as countries such as Italy and Austria back the deal. Trade Minister Laurent Saint-Martin has hinted that France could support the deal if it included "mirror clauses" for the same production standards, but the Commission rejects this because it does not want to reopen negotiations. "Mirror clauses are impossible," confirmed MEP Marie-Pierre Vedrenne of Macron's Renew group.
French businesses and the international context are pushing Paris to make concessions, according to Fabrice Le Saché of the Medef lobby. Paris is proposing the "escape clause" to restrict imports if they distort the market. Critics hope the European Parliament will stop the deal. Arnaud Rousseau of the FNSEA warned: "If von der Leyen loses the vote, it will be the end of her mandate," quoted by POLITICO. But a change of stance would be political suicide for Macron, as she pointed out Elvire Fabry from the Jacques Delors Institute.
POLITICO/gnews.cz - cik
