the EU’s top trade official warns the bloc would lose global credibility if it fails to approve its trade deal with the Mercosur group of South American countries.

The EU would lose global credibility if it fails to approve its trade deal with the Mercosur group of South American countries this week, the bloc’s top trade official said.

France is leading opposition within the EU Council, demanding strong safeguards to suspend tariff reductions if imports disrupt EU markets, so-called “reciprocity clauses” that align Mercosur's enviro...