Peace seems to have returned between Rome and Paris thanks to the G20. In the middle of the night on Monday, Macron, at the end of the summit proceedings, took a walk along the Ipanema waterfront in Rio de Janeiro with his wife Brigitte. Intercepted by some Italian journalists, he made a statement that caught the eye. The President, he let slip some praise for Giorgia Meloni, calling her position on Mercosur, ”a good move”. We met on the sidelines of the summit,” Macron explained, referring to his conversation with the Italian president, ”and we are satisfied with her position on Mercosur. It is a common battle”.
Paris-Rome axis against the Mercosur Agreement
Mercosur, a free trade treaty with South America’s common market founded in 1991 that includes Argentina, Brazil, Paraguay, Uruguay and Venezuela, has caused concern throughout Europe, especially among farmers. Germany and Spain are in favour, while Italy and France are opposed.
The agreement with the EU would allow South American agricultural products and raw materials to enter the European market, at a much lower cost, with the risk of severely damaging European agricultural enterprises, already severely tested by climate change and the war in Ukraine.
Mercosur has sparked protests across Europe, with sit-ins and demonstrations. In France, 85 sit-ins were organised by agricultural unions against the treaty, a movement that has not gone unnoticed in Italy, where the agricultural sector is equally alarmed.
The Italian government has followed developments closely, recognising in the French concerns a shared concern.
Speaking about the trade agreement between the European Union and the Mercosur countries, the Italian Minister of Agriculture, Francesco Lollobrigida, underlined several critical aspects in a press point on the sidelines of the EU Agrifish Council, ”To date, despite the fact that we are in favour of open and regulated markets, Europe is not able to guarantee the protection of its entrepreneurs with trade agreements with nations that have extremely lower production costs and are therefore able to enter the market with prices that are not sustainable for our entrepreneurs.
The European Union has already put on the table a proposal to gradually liberalise tariffs on products such as meat, sugar and tropical fruit, but also vehicles and chemicals. The elimination of customs duties, if ratified, would open the European market to cheap products from Mercosur, which would bring European companies to their knees. The agricultural sector in particular, especially in Italy, is very sensitive to the challenges of foreign competition and different regulations in terms of biosecurity and animal health.
Meloni and Macron seem to be united in arguing that the agreement as it stands risks undermining food security and the quality of European agricultural products.
If the battle against the Mercosur agreement proves to be a victory, Macron and Meloni could also find themselves playing a decisive role in influencing decisions concerning the future of the European Union.
The knot over EU appointments
Central to the talks between Macron and Meloni was also the topic of European appointments, in particular of the six executive vice-presidents of the EU Commission. The issue concerns the strong differences between
the Spanish Popular Party, who are trying to stop the candidature of Teresa Ribera, accused of not having adequately managed the floods in Valencia. Sanchez, the Spanish premier, seems willing to find a solution, giving the OK to Raffaele Fitto, but only on condition that Ribera also passes without a hitch.
Macron, in order to secure the support needed to push through his nominations, is pushing for a ‘package’ go-ahead for all. Giorgia Meloni, on the other hand, is pulling straight for Fitto to obtain European consensus.