An Elysée official said the deal would bring “limited benefits” to the EU economy and that it doesn’t sufficiently protect European farmers.
The announcement comes hours before a key vote by member countries on the deal.
Alongside Poland, France has been the fiercest opponent of the deal — but it lacks the numbers to stall it on Friday, especially if Italy backs it.
If the deal is approved, Commission President Ursula von der Leyen will fly to Paraguay to sign the accord as next week. The Mercosur bloc’s other members are Brazil, Argentina and Uruguay.