(Bloomberg) -- European Commission President Ursula von der Leyen shouldn’t be at the top of Emmanuel Macron’s list of problems these days.
But the French president took the time as his government was collapsing to remind her that the free-trade agreement she’s trying to clinch this week with Argentina, Brazil, Uruguay and Paraguay — the so-called Mercosur countries — is not acceptable.
“The draft agreement between the EU and Mercosur is unacceptable in its current form,” Macron’s office posted on X Thursday, hours after Prime Minister Michel Barnier went to the Elysee Palace to hand in his resignation letter following a no-confidence vote in parliament.
The timing of the post shows how sensitive the trade agreement is to France and its massive agriculture industry, which is worried the accord will give the South American nations unfair advantage related to environmental and regulatory obligations.
France has bristled at the pace of the talks and demands the commission to present the final content of the deal to member states first, according to an official familiar with the country’s position, who spoke on the condition of anonymity.
“The finish line of the EU-Mercosur agreement is in sight,” von der Leyen said in a post on X. “Let’s work, let’s cross it.”
France as well as Poland have publicly criticized the deal.
The timing is difficult for Macron, who needs to name a new prime minister in the coming days who can form a new government, all while navigating a fragmented lower house in which Marine Le Pen’s far-right National Rally has become the largest party.
Le Pen weighed in to criticize the Mercosur deal on X on Thursday, accusing von der Leyen of trying to “circumvent the will of the people.” Her lieutenant Jordan Bardella called it “a true provocation” and demanded that Macron condemn the commission president during a televised address planned later on Thursday.
The French president’s decision to call snap elections in June granted Le Pen her biggest-ever score in the lower house of parliament, giving her an outsized influence on the name of the next government chief and their policies. The political uncertainty is not just worrying investors, it could also weaken Macron’s ability to weigh in on European policies, including trade deals.
French officials close to Macron have been critical of the EU Commission chief, insisting that the deal might be rejected by member states even after being signed by von der Leyen.
In a sign of how important the issue is, Barnier mentioned his opposition to the deal in his very last speech at the National Assembly, right before being ousted.
There’s a large consensus against Mercosur across party lines in France as farmers are threatening to resume protests against a deal they describe as unfair.
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