The Government has said it still has grave concerns about the Mercosur trade deal ahead of a crucial EU vote on Friday.
In December, the EU decision on the deal was delayed in the face of opposition from France, Italy, Poland and Ireland.
Government sources are indicating that it is now expected that Italy will support the agreement which would be sufficient to pass the deal through the EU's qualified majority voting system.
Minister for Agriculture Martin Heydon will attend an EU farm ministers meeting in Brussels tomorrow, where bilateral meetings will be held on the Mercosur issue.
In a statement, the minister said: "We have repeatedly emphasised that beef is a very sensitive sector here in Ireland which is vulnerable to negative impacts from the Mercosur Agreement.
"The Government still also has concerns on the preferential access being given to Mercosur if South American farmers are not subject to the same sustainable farming standards as our own farmers. We had grave concerns about this deal in December, and they haven't gone away."
The Government will have to make a formal decision on whether to support or oppose the deal ahead of Friday's vote.
Independent Ireland has organised a protest against the deal on Saturday in Athlone, with thousands of farmers expected to attend.
IFA President Francie Gorman said the Government must continue to oppose the Mercosur trade agreement despite a move by the EU Commission to link it to the Common Agricultural Policy (CAP) funding.
"Trying to link Mercosur to the CAP smacks of desperation and shows the Mercosur deal cannot stand on its own two feet," said Mr Gorman.
"The two are separate issues and should remain so."
EU Commission proposes early access to agriculture funds
Meanwhile, EU Commission President Ursula von der Leyen proposed to give member states early access to some agriculture funds from the 2028-2034 EU budget to help farmers ahead of the meeting to discuss a trade deal with Mercosur.
"To ensure additional resources are available as of 2028 for addressing the needs of farmers and rural communities, I propose that member states will have access when submitting their initial plan to up to two-thirds of the amount normally available for the midterm review," she said in a letter addressed to the member states and the parliament.
"This represents about €45 billion ($52.70 billion) that can be mobilised immediately to support farmers," she added.
If approved, the Mercosur agreement would create the world's biggest free-trade zone and increase EU exports to Mercosur countries - Argentina, Brazil, Paraguay and Uruguay - by up to 39% at a value of €49 billion to the European economy.
This would expand EU's trading partners at a time of volatility in world trade in the face of increased tariffs.
However, a number of member states, including Ireland and France, are strongly opposed to the ratification of Mercosur.
Opponents cite the potential to massively distort key agricultural markets if EU farmers had to compete with lower-cost South American beef.
Friday's vote will be taken by EU ambassadors with President von der Leyen expected to go to Paraguay on 12 January if the agreement is passed.
Additional reporting: Reuters
