Italy, France say it is 'premature' to sign EU-Mercosur trade deal

By Angelo Amante and Giuseppe Fonte

ROME, Dec 17 (Reuters) - Italy and France on Wednesday said they were not ready to back a trade agreement between the European Union and the South American trade bloc Mercosur, dealing a blow to hopes of finalising the deal in the coming days.

European Commission President Ursula von der Leyen had been expected to fly to Brazil at the end of this week to sign the accord, reached a year ago after a quarter-century of talks with the bloc of Argentina, Bolivia, Brazil, Paraguay and Uruguay.

Germany, Spain and Nordic countries say the agreement will help exports hit by U.S. tariffs and reduce dependence on China by providing access to minerals.

Confirming an earlier Reuters report, Italian Prime Minister Giorgia Meloni sided with French President Emmanuel Macron in calling for a delay in approving the deal, which Poland and Hungary also oppose.

"The Italian government has always been clear in saying that the agreement must be beneficial for all sectors and that it is therefore necessary to address, in particular, the concerns of our farmers," Meloni told the lower house of Italy's parliament.

She told lawmakers it would be "premature" to sign the deal before further measures to protect farmers were finalised, adding the deal needed adequate reciprocity guarantees for the agricultural sector.

PARIS, ROME DEMAND TOUGHER SAFEGUARDS

France too wants tougher safeguards, including "mirror clauses" requiring Mercosur products to comply with EU rules on pesticide use, animal welfare and tighter food safety inspections.

"No one would understand if vegetables, beef and chicken that are chemically treated with products banned in France were to arrive on our soil," French government spokesperson Maud Bregeon told a news briefing. Supporters of the deal say it would not override existing EU regulations on food standards.

The European Parliament, Commission and the Council, the grouping of EU governments, are set to negotiate an agreement on Mercosur safeguards later on Wednesday after EU lawmakers backed tightening some controls on imports of some farm products.

Meloni's Brothers of Italy party said those controls were still not sufficient to ensure farmers could compete on even terms.

"This does not mean that Italy intends to block or oppose the agreement as a whole ... I am very confident that, come the start of next year, all these conditions can be met," Meloni said.

Brazilian President Luiz Inacio Lula da Silva reacted to the resistance from France and Italy by threatening not to sign as long as he is president.

"I already told them, if we don't do it now, Brazil won't have an agreement as long as I am president", Lula told a cabinet meeting on Wednesday. "If they say no now, we will be tough with them from now on. We gave in on everything that diplomacy could possibly concede."

The Mercosur bloc is already negotiating deals with other nations such as Japan, United Arab Emirates, India and Canada.