A landmark trade agreement between the European Union and the Mercosur bloc of South American nations has hit a last-minute snag, delaying its expected signing until January. The pause comes amid growing anxieties from European farmers about increased competition from South American agricultural products,triggering protests and political pressure in key EU member states.After 25 years of negotiations, the deal-which would create one of the worldS largest free trade zones-now faces renewed uncertainty as Italy joins France in seeking further concessions.
European Commission President Ursula von der Leyen informed European leaders on Thursday, December 18, 2025, that the signing of a free trade agreement with the Mercosur trade bloc will be postponed until January, though a specific date remains unconfirmed, diplomatic sources said.
The delay comes as concerns mount over the potential impact of the agreement on European farmers, and underscores the challenges of finalizing major trade deals in the face of domestic political pressures. According to a European source who spoke with the Spanish news agency EFE, Brazil, Argentina, Uruguay, and Paraguay – the member states of Mercosur – were “informed” of the decision to postpone the vote originally scheduled for Friday and reportedly agreed to the delay. A vote within the European Union Council, followed by a formal signing, is now expected to take place “in early January,” effectively ruling out Brazil’s hope of finalizing the deal this Saturday, December 20.
The European Commission had been aiming to finalize the agreement – which would create the world’s largest free trade zone – this week. However, plans were disrupted after Italy joined France in calling for a postponement to secure greater protections for its agricultural sector. The agreement has been under negotiation for a quarter of a century, and would allow European companies to increase exports of vehicles and machinery to Mercosur countries.
Meloni Seeks “A Few Days” for Consultation
The proposed agreement would also facilitate increased exports of products like beef, rice, honey, and soybeans from South American countries into the European market, where they are often more competitive. This prospect has fueled protests in Europe, particularly among farmers, with demonstrations taking place in Brussels on Thursday that resulted in clashes near the European Union institutions.
For the deal to move forward, a qualified majority – 55 percent of EU member states representing at least 65 percent of the European population – would need to approve it. Achieving this threshold proved nearly impossible given France’s outright opposition and Italy’s late-stage reservations.
Italian Prime Minister Giorgia Meloni told Brazilian President Luiz Inácio Lula da Silva on Thursday that she is “willing” to sign the agreement “as soon as responses are given to the farmers” and requested “a few days” to resolve concerns related to potential backlash from agricultural groups in Italy, citing “political problems with farmers.”
DZC (EFE, AFP)
