The European Union said today that member states had made “progress” towards approving the trade deal with South American bloc Mercosur and it hoped to sign the agreement “soon”.
Diplomats have said the EU aims for a signature on January 12 after hopes to ink the agreement in December were dashed by France and Italy joining forces in demanding a delay.
European Commission chief spokeswoman Paula Pinho did not confirm the new January date but insisted the EU was on the “right track” to get the deal over the line in the near future.
“There have been discussions, work, and progress over the past two weeks,” she told a press conference in Brussels.
According to Bloomberg News, Italy plans to support Mercosur, clearing a major hurdle for the contentious free trade agreement.
More than 25 years in the making, the accord would create the world’s biggest free-trade area, boosting trade between the 27-nation EU and the bloc comprising Brazil, Paraguay, Argentina and Uruguay.
But plans to seal the deal at a Mercosur gathering in Brazil on December 20 ran into a late roadblock as heavyweights Italy and France demanded a postponement over concerns for the farming sector.
The deal would help the EU export more vehicles, machinery, wines and spirits to Latin America at a time of global trade tensions.
In return, it would facilitate the entry into Europe of South American meat, sugar, rice, honey and soybeans.
This has alarmed many European farmers who fear they will be undercut by a flow of cheaper goods from agricultural giant Brazil and its neighbours.
Rome and Paris have called for tougher safeguard clauses, tighter import controls and more stringent standards on Mercosur producers to protect their farmers.
