EU–Mercosur agreement could be signed on December 20

With an eye on the possibility of signing the free trade agreement between the European Union and Mercosur later this year, President Luiz Inácio Lula da Silva met on Wednesday with European Commission President Ursula von der Leyen and Finnish President Alexander Stubb, who is also part of the European bloc.

Both the Brazilian government and the European Union expect to sign the agreement by December 20, 2025, according to Foreign Minister Mauro Vieira.

“The President of the European Commission reaffirmed her belief and firm hope that the agreement will be signed at the end of the year, on December 20, in Rio de Janeiro,” the minister told reporters on Wednesday evening (5) in Belém.

The bilateral meetings took place on the sidelines of the Belém Leaders’ Summit (PA), scheduled for Thursday (6), and also served as an opportunity for the Brazilian president to bring up the imminent trade deal between the two continents.

During the conversation with Stubb, Lula received a clear indication that Finland supports signing the trade agreement next month, as desired by the Brazilian government. The matter is considered a top priority for the presidential office, since Lula wants the deal to be finalized while Brazil holds the rotating presidency of Mercosur.

“Both leaders (Lula and Stubb) supported the signing of the Mercosur–European Union agreement during the Mercosur Summit, to be held in Rio de Janeiro in December,” stated a note from Brazil’s Presidential Communications Secretariat.

That same day, Lula also met with Ursula von der Leyen to discuss the matter. The only remaining step is approval by the European Council, which would allow the agreement to be officially signed and enforced between both regions.

Negotiations began in 1999, and while the agreement was announced at the end of 2024, further steps are still required for its implementation. One of them involves approval by 65% of the European Council, whose members are the heads of state of EU countries, and that 65% must represent 55% of the European Union’s population.

Because of this formula, the vote count is considered “complex” and “dynamic,” with no fixed number required. Brazilian negotiators even use a mobile app to calculate the necessary votes daily.

For context, an alignment between France, Poland, and Italy — countries that have expressed opposition or ambiguity regarding the deal — would be enough to block it.

The EU–Mercosur agreement would encompass a combined GDP of about US$ 22 trillion, covering around 700 million people. In September, Mercosur had already signed a separate trade agreement with the EFTA bloc, which includes Switzerland, Norway, Iceland, and Liechtenstein.

Source: Valor Econômico

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