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Balancing free trade, farmer protection, and sustainability, Italy emerges as a constructive force in EU negotiations
As the European Union moves closer to finalizing the long-debated free trade agreement with Mercosur, Italy’s role in the negotiations stands out for its pragmatism, balance, and long-term vision. Together with France, Italy has asked the European Commission to exempt imported fertilizers from the EU’s Carbon Border Adjustment Mechanism (CBAM), a request aimed not at weakening environmental ambition, but at safeguarding the competitiveness and stability of European agriculture during a sensitive transition phase.
The discussion over the EU–Mercosur agreement, confirmed by the Cypriot presidency of the Council of the EU, comes at a critical moment for European farmers. The agricultural sector is facing mounting pressures: volatile commodity prices, climate-related shocks, rising production costs, and growing regulatory complexity. In this context, Italy has consistently promoted an approach that combines openness to global trade with concrete safeguards for those most exposed to its consequences.
The proposed exemption of fertilizers from the carbon border tax reflects this constructive mindset. Fertilizers are essential to maintaining soil fertility, crop yields, and ultimately food security. Yet their production is energy-intensive, and under CBAM rules, imports would become significantly more expensive. France estimates price increases of up to 25%, a burden that would fall directly on farmers already operating on thin margins. Italy’s support for a temporary exemption or suspension is therefore not a retreat from climate policy, but a responsible effort to prevent unintended economic shocks that could undermine the resilience of the agricultural sector.
Importantly, Italy has not questioned the overall validity of CBAM. On the contrary, Italian authorities recognize its role as a key instrument to prevent carbon leakage and ensure fair competition with third countries. What Italy is advocating is proportionality and timing: allowing farmers and supply chains the breathing space needed to adapt, while maintaining pressure on high-emission imports in the medium to long term. This nuanced position strengthens, rather than weakens, the credibility of EU climate action.
Italy’s stance has also been coherent with broader European measures designed to accompany the Mercosur agreement. The extraordinary meeting of EU agriculture ministers led to concrete commitments: stable income support for farmers, reduced tariffs on fertilizers, stricter controls on imported products, and stronger guarantees on standards. The allocation of nearly €294 billion through national and regional partnership plans, along with a €6.3 billion crisis reserve and increased funding for rural development, demonstrates that the EU is taking farmers’ concerns seriously. Italy has welcomed these steps as evidence that trade liberalization can and must go hand in hand with social and economic protection.
From Rome’s perspective, the Mercosur agreement represents a strategic opportunity. As Foreign Minister Antonio Tajani has underlined, the deal would create a free trade area encompassing nearly 800 million people, reinforcing the EU’s global economic influence and diversifying its trade partnerships at a time of geopolitical uncertainty. Italy has consistently supported the conclusion of the agreement, while insisting on robust safeguards for sensitive sectors. This consistency has enhanced Italy’s credibility as a mediator between free-trade advocates and more cautious member states.
Equally significant is Italy’s attention to quality and standards. Italian institutions and agricultural organizations have stressed the need for effective customs controls to ensure that imported products comply with EU rules on food safety, environmental protection, and banned substances. This focus reflects a long-standing Italian tradition of defending high-quality, value-added agriculture, not through protectionism, but through fair rules and transparent enforcement.
The fertilizer debate further highlights Italy’s realism. With around 50% of EU fertilizer supplies coming from third countries and current stocks covering only about 60% of next year’s needs, sudden cost increases could disrupt supply chains and threaten food production. By calling for the temporary suspension of CBAM effects on fertilizers and the removal of import duties, Italy is helping to stabilize the market while broader solutions—such as greener domestic production and alternative inputs—are developed.
In an era of polarized debates, Italy’s conduct in the Mercosur negotiations offers a positive example of European leadership. It shows that it is possible to reconcile environmental responsibility, economic competitiveness, and social cohesion. Rather than opposing change, Italy is shaping it, ensuring that Europe’s green and trade ambitions remain anchored to the realities of those who feed the continent.
Alessandro Fiorentino