The planned signing of the free trade agreement between the EU and the Mercosur states Brazil, Argentina, Uruguay, and Paraguay has been postponed. Italian Prime Minister Giorgia Meloni stated that her country is not yet ready to approve it, preventing the required majority. A new date is expected in the first half of January.
The signing of the EU-Mercosur free trade agreement, scheduled for this Saturday, must be postponed. EU representatives announced this on the sidelines of the summit of heads of state and government in Brussels. EU Commission President Ursula von der Leyen and EU Council President António Costa had actually planned to travel to Brazil to sign the deal.
Italy's position is crucial: Meloni stated that her country cannot yet approve it. The Italian government emphasized it is ready to sign once adequate responses are provided to farmers, depending on the EU Commission, which can be quickly specified.
German Chancellor Friedrich Merz expressed disappointment. He had hoped the EU would remain credible in trade policy by approving the deal. In June, he said there were no fundamental objections left. At the October summit, he accidentally announced: "It's done. It's through." Costa later corrected him.
Negotiated since 1999, the agreement would create the world's largest free trade zone with over 700 million inhabitants and counter US President Donald Trump's protectionist policies. It provides for the dismantling of tariffs and trade barriers. Industry associations, such as the automotive sector, expressed frustration: "The world does not wait for Europe."
Brazil's President Luiz Inácio Lula da Silva announced he would present Meloni's postponement request at the Mercosur summit on Saturday. He had previously threatened Brazil's withdrawal if the EU does not approve in time.
On Wednesday, EU countries and Parliament agreed on safeguard clauses for agriculture, including countermeasures against harmful imports and a declaration on higher production standards. Nevertheless, thousands of farmers protested violently in Brussels against the agreement; police used water cannons and tear gas.
France's President Emmanuel Macron stressed that the safeguard clauses had improved matters but were still insufficient. For approval, the EU needs at least 15 of 27 states representing 65 percent of the population. In German circles, the delay is seen as not dramatic; the deal seems certain to proceed.