Italy turns around, EU may sign deal with Mercosur

Italy is set to back the long-awaited EU-Mercosur free trade agreement, which could remove the last major obstacle to its signing. The deal, a quarter of a century in the making, would create a common market of 780 million people and remove tariffs on goods such as cars and agricultural products, according to Bloomberg.

Rome and Paris have so far blocked the deal because of concerns about Europe's agribusiness sector.

Italian Prime Minister Giorgia Meloni has demanded additional guarantees and funding for farmers, while French President Emmanuel Macron has rejected a deal without stricter environmental and safety standards.

However, according to information from Brussels, progress has been made in recent weeks and the signing could take place as early as 12 January. The agreement would strengthen the EU's position in a region increasingly dominated by China, while expanding trade outside the US, which has imposed tariffs.

(pir)