Plans by the European Union to finalise a massive trade agreement with the South American Mercosur bloc this week have been thrown into uncertainty. This follows a last-minute intervention by Italy, which has now joined France in demanding a delay to the signing of the historic pact.
Italy's Last-Minute Demands Throw Deal into Disarray
With just days remaining before a planned signing ceremony in Brazil, Italian Prime Minister Giorgia Meloni declared on Wednesday that Rome was not prepared to approve the agreement. Speaking to parliament, Meloni stated it would be "premature to sign the deal in the coming days." She argued that crucial safeguards requested by Italy to protect its agricultural sector from a flood of South American imports had not been fully finalised.
This move by Italy significantly strengthens the position of France, which has long been a vocal critic of the deal. French President Emmanuel Macron told a cabinet meeting that France would "firmly oppose" any attempt by the EU to force the agreement through. Paris has called for robust safeguard clauses, stricter import controls, and more demanding environmental standards for Mercosur producers.
A Twenty-Year Negotiation Faces Final Hurdle
The EU-Mercosur agreement, two decades in the making, aims to create the world's largest free-trade area. It is strongly supported by economic powerhouses like Germany and Spain, who see it as a vital strategy to diversify trade and boost exports amid global competition and US tariffs.
The deal promises significant benefits for both sides:
- The EU would gain greater access for its vehicles, machinery, wines, and spirits in Latin American markets.
- Mercosur nations—Brazil, Argentina, Paraguay, and Uruguay—would see eased entry for their agricultural products like beef, sugar, soybeans, and honey into Europe.
However, this very prospect has ignited fierce opposition from European farmers. Thousands are converging on Brussels, where EU leaders are set to discuss the matter at a summit, to protest against what they see as an existential threat to their livelihoods.
Signing Ceremony in Doubt as Diplomatic Tensions Rise
The sudden resistance has cast a dark cloud over the travel plans of European Commission President Ursula von der Leyen. She was expected to fly to Foz do Iguacu, Brazil, this Saturday to formally sign the accord with Mercosur leaders. The situation prompted one European diplomat to sarcastically remark, "I hope she has a refundable ticket."
While Meloni insisted Italy does not intend to block the agreement permanently and expressed confidence it could be signed early in 2026, the delay is a blow to the EU's credibility. Brussels had insisted on concluding the deal by year's end. Brazilian President Luiz Inacio Lula da Silva expressed hope for a weekend signing, urging Macron and Meloni to "take responsibility."
With Hungary and Poland also expressing reservations, the new coalition of critics now potentially commands enough votes within the European Council to formally reject the deal if it comes to a vote, leaving the future of this landmark trade pact hanging in the balance.
