Following the EU's announced delay—as previously reported—the Mercosur summit in Foz do Iguaçu concluded on December 20 without signing the trade pact. Brazil handed the pro tempore presidency to Paraguay amid Lula's frustration, while leaders eye alternatives with China, Canada, and others. Chancellors including Argentina's Pablo Quirno remain hopeful for a near-term EU signing.
The Mercosur summit in Foz do Iguaçu, Brazil, wrapped up on December 20, 2025, without the anticipated signing of the 26-year-old trade agreement with the European Union, following the postponement confirmed earlier due to farm lobby pressures in Italy, France, and Poland.
Brazilian President Luiz Inácio Lula da Silva, handing over the pro tempore presidency to Paraguay, voiced sharp frustration over the delay, warning that Brazil would pursue no further agreements under his leadership if not resolved soon. EU Commission President Ursula von der Leyen had downplayed the holdup, suggesting a January conclusion.
Argentine Chancellor Pablo Quirno, in his debut at the summit, expressed optimism: "We are optimistic that the Mercosur and European Union agreement will be signed soon." A report from the Bolsa de Cereales and Fundación INAI dismissed EU concerns over sanitary, commercial, or environmental risks, attributing the delay to internal politics and biases rather than substantive issues.
In response, Mercosur is accelerating diversification of trade partners. China remains the bloc's top partner, with new overtures to Canada, the United Kingdom, Japan, and beyond. Uruguayan Chancellor Mario Lubetkin emphasized: "While we are a bloc of partner and brother countries, we cannot ignore that the needs of each member state do not always coincide."
Argentine President Javier Milei's attendance underscored a pragmatic stance amid rising global protectionism, including U.S. President-elect Donald Trump's 'Liberation Day' rhetoric.