Brazilian President Luiz Inácio Lula da Silva has announced a fresh delay in the signing of a historic free-trade agreement between the South American trade bloc Mercosur and the European Union. The deal, now targeted for January, faces renewed opposition from European nations, notably France and Italy.
Summit Talks and the Cause of Delay
Speaking on Saturday at a summit of South American leaders in Foz do Iguacu, Brazil, President Lula revealed the setback. The meeting was convened after European negotiators had signalled their readiness to finalise the pact, which did not materialise. Lula directly attributed the postponement to a request from Italian Premier Giorgia Meloni for more time.
European Commission President Ursula von der Leyen confirmed the delay on Friday, stating the signature would be pushed back by "a few extra weeks" to resolve concerns from member states. This followed a tense EU summit and widespread protests by European farmers who fear the impact of the agreement.
Political Hurdles and Veto Power
The path to ratification is fraught with political challenges. For the deal to proceed, Von der Leyen requires the backing of at least two-thirds of the 27 EU nations. Italy's stated opposition is significant, as it potentially provides France with enough votes to form a blocking minority and veto the signature.
French President Emmanuel Macron has been a vocal critic, stating on Thursday he would not commit to supporting the deal next month. He has coordinated with leaders from Italy, Poland, Belgium, Austria, and Ireland to address the mounting concerns of European farmers.
However, Lula countered that Macron alone cannot block the agreement. "Without political will and courage from leaders, it won’t be possible to finish a negotiation that has dragged for 26 years," the Brazilian president told his peers.
Global Significance and Mercosur's Next Moves
The proposed EU-Mercosur agreement is one of the world's most ambitious trade pacts. It would create a combined market of 780 million consumers and cover roughly a quarter of the global Gross Domestic Product (GDP). The deal aims to progressively eliminate tariffs on the vast majority of goods traded between the two blocs.
Despite the delay, Lula expressed optimism and highlighted Mercosur's other options. "The world is eager to make deals with Mercosur," he said, adding that the bloc would continue engaging with other international partners. He pledged to conclude pending deals before the end of his presidency of the trade bloc in December.
The active Mercosur members—Brazil, Argentina, Uruguay, Paraguay, and Bolivia—have been negotiating with the EU since 1999. The latest delay underscores the complex balance between global trade ambitions and domestic political pressures, particularly in Europe's agricultural sector.
