The interview

Mercosur, Lollobrigida: 'With reciprocity of rules Italy is ready to give its green light'

The Minister of Agriculture, Francesco Lollobrigida, yesterday participated in the informal Council of EU Ministers: 'All requests on CAP funds and fertilisers presented by the government accepted'

by Giorgio dell'Orefice

Francesco Lollobrigida

3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

An accurate screening in the folds of the EU budget to recover some 90 billion euro and thus neutralise the heavy cuts that the von der Leyen Commission had proposed for the EU agricultural policy (-22% on the multi-year budget). But there are also a number of measures of shorter scope but no lesser impact, such as the suspension (retroactive from 1 January) of the Cbam carbon adjustment mechanism that is igniting fertiliser prices and putting EU farmers in difficulty. Not forgetting the long-awaited reassurances on the principle of 'reciprocity', i.e. the guarantee that agricultural products imported into the EU from Latin America are produced to the same safety standards required of European producers.

It is through these decisions, taken on Wednesday 7 January by the informal Council of EU agriculture ministers, that Italy's long-awaited go-ahead for the EU-Mercosur trade agreement could arrive at the Coreper meeting scheduled for next Friday.

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A negotiation led personally by the Minister of Agriculture and Food Sovereignty, Francesco Lollobrigida. "There are many issues that we dealt with," explained Lollobrigida, "but the first fundamental step was the defence of the CAP. The von der Leyen Commission had proposed cutting the Common Agricultural Policy budget by 22 per cent. Around 90 billion less resources, over seven years, for European farmers. We opposed this from the very beginning. The European Parliament also sided with us and we have now managed to find about 90 billion euro in the folds of the EU budget, which will make it possible to neutralise the proposed cuts and Italy will even gain an extra billion compared to the previous seven-year period. This intervention was a priority because before we worry about opening up markets, we need to ensure the survival of the entrepreneurial fabric and in particular of farms. Whereas with the announced cuts, businesses were at great risk'.

In detail, where were the resources recovered?

A first tranche of 48 billion was recovered from the cohesion fund by establishing a constraint in favour of agriculture. These resources will therefore no longer be tied to rural areas. In Italy, around 92% of the country's territory is made up of rural areas and there was a strong risk that these funds would end up in initiatives implemented in rural areas but with no agricultural value.

And the second half?

A further 45 billion will be recovered from a fund for which, in principle, it was planned that one third of the endowment, starting in 2031, would be available to farmers. With the changes, farmers will have half of the endowment at their disposal, starting on 1 January 2028.

So the Pac is armoured?

Financially, I think so. The battle now shifts to the governance of the agricultural policy. Our main objective now would be to re-establish a first pillar of direct aid to farmers outside the single fund. But if this path should not prove viable, we could think about building a sort of 'protective fence' within the single fund to protect the farming world. But there is time to discuss this.

An important decision on the fertiliser issue also came out of yesterday's meeting

A real emergency intervention. Since the beginning of the year with the entry into force of the carbon adjustment mechanism Cbam (in fact a tariff on carbon emissions produced to make fertilisers) product prices have risen by 10-20% making life difficult for farmers. With yesterday's decision the additional tariff has been de facto anaesthetised, tariff increases for 2026 will be suspended, and tariffs on imports from fertiliser-producing third countries other than Russia and Belarus under EU sanctions have been set at zero. As a result of these measures, we believe that farmers can also make savings on their fertiliser expenditure.

What is missing for Italy to give its final go-ahead to the Mercosur agreement?

The last mile is missing. That is, the guarantees on the principle of reciprocity that will be discussed in Coreper next Friday. It must be guaranteed that agricultural products from third countries imported into Europe comply with the same food safety rules imposed on European producers in order to avoid unfair competition. Much will be done with border and market controls. These are rules that can guarantee businesses but also consumers. There is general agreement on this, so much so that Health Commissioner Várhelyi stated that the principle of reciprocity in the future will not only apply to Mercosur but also to future international agreements.

So what is still missing?

Agreement on safeguard clauses is missing. At present, an 8% threshold is set to identify an imbalance in prices and imports. If, as a result of Mercosur, there were to be an increase in imports from Latin America of more than 8% or a collapse in European prices of more than 8%, the trade agreement would be immediately suspended.

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