EU summons farm ministers to secure Mercosur deal backing

The European Union has convened EU agriculture ministers for last-minute talks on Wednesday to convince Italy and other wavering member countries to sign up to a contentious free trade deal with South American bloc Mercosur.

Italy and France last month dashed hopes for a December deal, saying they were not ready to support it until farmer fears of an influx of cheap commodities from Mercosur, such as beef and sugar, were resolved.

All 27 EU agriculture ministers have been invited to the meeting at the Commission, the EU presidency holder Cyprus said on Tuesday, although it was not clear yet how many would attend.

European commissioners for agriculture, trade and health are expected to give reassurances over future funding for farmers under the EU's Common Agricultural Policy including a 6.3 billion euro ($7.4 billion) crisis fund in the next EU budget.

The Commission's move to merge regional cohesion funds and CAP money in the next seven-year budget alarmed farming nations.

They will also review import controls, including permissible maximum levels of pesticide residues, two EU diplomats said.

"It is a critical moment to discuss demands from farmers," one of the diplomats said, adding that the Commission was expected to send a letter to members setting out income support for farmers.

WOOING EU MEMBERS FOR SUPPORT

The EU executive, supported by EU-Mercosur proponents such as Germany and Spain, is seeking to garner the broad majority of 15 EU members representing 65% of the EU population required to authorise the EU signature, possibly as early as January 12.

They say the accord, which has been 25 years in the making and would be the EU's largest in terms of tariff reductions, is vital to boosting exports hit by U.S. import taxes and to reduce reliance on China by securing access to critical minerals.

With Poland and Hungary opposed to the deal and France critical, the position of Italy will be a key determinant of whether the deal can be signed. A vote is expected on Friday.

The Commission had held discussions with member states over the past two weeks and the bloc was on track to sign the agreement soon, a spokesperson for the executive said.

Italy is not opposed to the deal, two Italian sources told Reuters on Tuesday, but wanted assurances - notably on reciprocity - so that imported farm products meet EU health and environmental standards. These were due to be discussed on Wednesday.

A second EU diplomat said Italy was not yet fully on board.

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