EU-Mercosur: Perspectives and Policies from Italy and France

While the EU-Mercosur agreement has been a source of intense debate for 25 years, the tide shifted significantly in the first week of 2026. Italy, previously a vocal skeptic alongside France, has signaled its intention to support the deal following a series of technical breakthroughs in Brussels. The Italian government, under Giorgia Meloni, successfully negotiated for enhanced agricultural safeguards and a commitment for additional EU budget support to assist farmers in adapting to the new market realities. This Italian support is seen as a turning point, as it likely prevents France from assembling the “blocking minority” needed to halt the agreement’s signature, currently scheduled for January 12, 2026.

For the tomato industry, the agreement aims to eliminate high trade barriers that have historically limited European exports to the South American market. Currently, Mercosur countries apply significant tariffs on processed goods; for example, canned peaches and various prepared vegetables face duties that the agreement intends to phase out, providing European food processors with a competitive “first-mover” advantage.

Conversely, to protect European producers from a sudden surge of South American imports, the agreement includes a reinforced Bilateral Safeguard Clause. Under the terms finalized in late December 2025, the EU can temporarily suspend tariff preferences if imports of sensitive products (including certain processed vegetables) increase by more than 8% or if their market price drops by more than 8% compared to a three-year average. Investigations into such market disruptions have been accelerated, with the possibility of implementing provisional protective measures within just 21 days.

While the broader trade deal moves forward, France has taken a distinct path regarding food safety and “reciprocity.” On January 7, 2026, the French government published an unprecedented decree aimed at ensuring that imported products meet the same stringent chemical standards as those grown domestically. This measure specifically targets tomatoes, alongside other produce like peppers and citrus fruits.

The decree suspends the importation and sale in France of any products containing detectable residues of five specific pesticides currently banned in the EU: mancozeb, glufosinate, thiophanate-methyl, carbendazim, and benomyl. French authorities argue that this is a necessary step to combat “unfair competition,” as these chemicals allow foreign producers to lower costs in ways that are illegal for French farmers. While the European Commission must still review this unilateral ban within a 10-day window, the French Ministry of Agriculture has already deployed specialized teams to enforce strict border controls.

The urgency to finalize the agreement is also driven by global shifts. European leaders, including those in Rome and Brussels, increasingly view the Mercosur bloc as a vital strategic partner to diversify supply chains and raw material sources, particularly as trade tensions with the United States and China continue to escalate. For the food industry, this means navigating a complex environment where market access is expanding through the trade deal, while national-level sanitary regulations in countries like France are becoming more restrictive.