EU Offers Farmers Cash to Salvage Stalled Mercosur Deal

The European Union has offered additional funds to farmers in an attempt to secure a major trade agreement with South America's Mercosur bloc. The deal is targeted for signing on January 12. This financial offer is a direct response to ongoing farmer protests, particularly in France. Farmers have protested for weeks, partly against the Mercosur pact. They fear increased competition from South American imports. The EU's new proposal has not satisfied the French protesters. For them, the trade deal is only one concern among many. Other issues include government-ordered cattle culls to control disease, falling wheat prices, and rising costs for pesticides. The Mercosur agreement would create one of the world's largest free-trade areas. The EU now hopes the extra funding will ease farmer opposition and allow the long-delayed deal to proceed.