EU Commission backs Mercosur deal despite deep uncertainty

The European Commission, the executive arm of the European Union (EU), insisted that it remains committed to signing the trade agreement with Mercosur on Saturday in Foz do Iguaçu, but effectively acknowledged that the scenario is still uncertain, conditioning the final move to decisions that the Member States must take in the coming hours or days.

Over the weekend, the French government announced, in a statement, that France had asked the EU to postpone the deadlines scheduled for this week for the signing of the free trade agreement with Mercosur, arguing that the “conditions were not met for any vote” by European states. “France requests that the December deadlines be postponed to continue the work and obtain legitimate protective measures for our European agriculture,” the French government said.

On Monday, the European Commission’s traditional press briefing for journalists in Brussels included, among its main topics, the persistent political difficulties surrounding the signing of the bi-regional agreement. This comes as major protests by European farmers are anticipated, even as the European Parliament is expected to vote on stricter safeguards to protect them from competition from Brazil, Argentina, Paraguay, and Uruguay.

Intense meetings among ministers from the 27 EU Member States and conversations among European heads of state continue. European Commission President Ursula von der Leyen is expected to travel quickly to Berlin. Europeans find themselves geopolitically weakened, under pressure from Russia’s military threats, and with less support from the United States. Still, countries such as France — backed by others — continue to oppose the agreement with Brazil, Argentina, Paraguay, and Uruguay.

Within the Brazilian government, the feeling is that the EU might once again “back out” and not sign the agreement on Saturday, which would be even more frustrating. For Brasília, what Mercosur is offering the Europeans, in addition to broad access to the South American market, is a strategic alliance amid global uncertainty. Officials believe that postponing the signing to next year would not resolve the impasse, as opponents would continue to raise new obstacles.

Asked in Brussels about the possibility of the Commission President rescheduling her trip to Brazil for 2026, spokesperson Olof Gill responded that, on behalf of the European Commission and the European Union, the expectation remains to sign the EU-Mercosur agreement by the end of 2025, provided that the Council procedures are completed.

According to the spokesperson, signing the agreement now is considered crucial from an economic, diplomatic, and geopolitical standpoint and essential for the EU’s international credibility. He stressed that the deal offers significant savings for European companies, with tariff reductions and improved access to the Mercosur market, benefiting especially small and medium-sized enterprises.

The spokesperson also emphasized that the agreement’s relevance goes beyond trade, bringing together two of the world’s largest economic blocs at a moment of growing geopolitical uncertainty. According to him, the partnership would allow cooperation on issues such as climate, security, the economy, and the strengthening of global trade rules.

When asked about the possibility of France taking the agreement to the Court of Justice of the EU to block it, the spokesperson said that the Commission has done everything within its power to present a robust agreement, and that it is now up to the Member States and the Council to decide the next steps.

Finally, the European Commission reiterated its belief in rules-based global trade, in mutual trust and in respect among partners, stating that trade agreements remain fundamental tools for economic growth, competitiveness, job creation, and stability in a turbulent global environment.

Source: Valor Econômico

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