The Mercosur summit in Foz do Iguaçu ended in disappointment after the EU confirmed a delay in signing the long-negotiated trade agreement with the bloc, originally set for Saturday (20). As covered earlier from the EU side, Italy's reservations prompted the postponement; Brazilian officials expressed frustration but see signing possible in January 2026.
Diplomats from Brazil, Argentina, Uruguay, and Paraguay were gathered in Foz do Iguaçu for the heads-of-state summit when the EU's delay—announced Thursday (18)—hit, prompting a brief pause in preparatory talks before continuing.
Lula's aides called the episode unpleasant amid Brazil's rotating presidency handover to Paraguay in 2026, especially in an election year where the deal could bolster Lula's image. Still, they avoided criticizing EU safeguards, which trigger probes if beef or sugar prices fall over 8% or imports exceed three-year averages by that margin. Foreign Minister Mauro Vieira said a full safeguards package would follow signing.
Behind the scenes, blame fell on Europe's disunity, with France and Italy yielding to farm lobbies. Lula spoke by phone with Italian PM Giorgia Meloni, who sought a month to placate producers. After talks with Emmanuel Macron—per Finance Minister Fernando Haddad—Lula relented despite prior threats. EU's Ursula von der Leyen and António Costa scrapped their trip.
Former Trade Secretary Marcos Troyjo told Folha: "Things get harder for Mercosur countries and the EU. It's a big defeat for the European Union not to make the agreement."