European Commission President Ursula von der Leyen confirmed the postponement of the EU-Mercosur free trade agreement signing to January, canceling her trip to Foz de Iguazú. The move stems from opposition by France and Italy, fueled by farmer protests in Brussels fearing South American competition. Brazilian President Lula da Silva accepted the delay following talks with European leaders.
The EU-Mercosur free trade agreement, negotiated since 1999, has long been stalled by agricultural disputes. Issues over imports of meats and sugar have delayed its finalization for decades. On Thursday, the planned signing on Saturday in Foz de Iguazú, Brazil, was canceled, as announced by Ursula von der Leyen, who suspended her visit.
The postponement arises from strong opposition from France and Italy. Hundreds of farmers protested in Brussels against the deal, fearing competition from major exporters like Brazil and Argentina. In France, these demonstrations have politically weakened President Emmanuel Macron, who refuses to endorse the pact. Italian Prime Minister Giorgia Meloni joined this stance, requesting time for her country to approve it within a month.
Brazilian President Lula da Silva had issued an 'now or never' ultimatum but accepted the delay after speaking with Meloni, given the risk of a negative vote in the EU Council. Germany and Spain pushed for approval, as did von der Leyen, who stated: 'It is of enormous importance that we get the green light and conclude the signing'.
To ease concerns, the European Parliament approved clauses allowing unilateral suspension of South American meat imports if undue price drops occur. Brazilian Foreign Minister Mauro Vieira said Mercosur accepts these safeguards and is open to its own post-signing. Experts like Jean-Luc Demarty, former Agriculture Director at the European Commission, criticized France's position: 'France is totally wrong'. The EU already imposes 1.5% tariff quotas on these products.
The deal would benefit 721 million people and a $22 trillion GDP, but tensions linger until January.