Trade Agreement Postponed After 26 Years of Negotiations
Brazilian President Luiz Inácio Lula da Silva stated on Saturday that he anticipates the extensive free-trade pact between the South American Mercosur bloc and the European Union to be finalized in January. However, recent demonstrations by European agricultural producers and resistance from France and Italy have jeopardized an accord that has been in discussion for over a quarter-century.
European Leaders Seek Additional Time
European Commission President Ursula von der Leyen announced on Friday following a contentious EU summit that the signing would be deferred "a few extra weeks to address some issues with member states." This came after top EU officials had planned to complete the agreement in Brazil this weekend.
During a summit in Foz do Iguacu, Brazil, Lula informed fellow South American leaders that the gathering was convened because European negotiators had previously indicated they would ultimately sign the deal, which did not occur. He attributed the delay to Italian Prime Minister Giorgia Meloni's request for more time.
Von der Leyen requires approval from at least two-thirds of EU nations to secure the agreement. Italy's opposition would provide France with sufficient votes to veto von der Leyen's signature.
Political Will Required to Conclude Negotiations
"Without political will and courage from leaders, it won't be possible to finish a negotiation that has dragged for 26 years," Lula told his counterparts. He had spoken with Meloni by phone on Friday and received correspondence from EU leadership aiming for a January settlement. "Meanwhile, Mercosur will continue to work with other partners," he added.
The Brazilian leader emphasized global interest in Mercosur partnerships, stating, "The world is eager to make deals with Mercosur. Many countries want that. And we certainly will be able to finish the deals that were not finished during my presidency (of the bloc, due in the end of December)."
Agreement Would Create Major Economic Zone
If ratified, the trade pact would establish a market encompassing 780 million consumers and represent one-quarter of global GDP. It would gradually eliminate tariffs on nearly all products exchanged between the two economic blocs.
France has spearheaded opposition to the arrangement between the EU and Mercosur's five active members: Brazil, Argentina, Uruguay, Paraguay, and Bolivia. French President Emmanuel Macron declared at Thursday's EU summit that he would not commit to supporting the deal next month.
Macron noted he has been consulting with Italian, Polish, Belgian, Austrian, and Irish counterparts about postponing the agreement to address agricultural concerns. Lula countered that Macron alone cannot obstruct the accord.
"Let's hope that things happen for the good of our Mercosur, multilateralism and the development of our countries," the Brazilian president concluded.
