Mercosur-EU trade deal signing delayed to January

The President of the European Commission, Ursula von der Leyen, said she believes there is now a sufficient majority among the 27 European Union countries to sign the Mercosur agreement within three weeks, although she acknowledged that some adjustments still need to be finalized within the bloc.

“Yes, I am confident that we have a sufficient majority, but there is still work to be done with the Member States,” she said at 4 a.m. on Friday during a press conference reviewing the European Council meeting. “After 26 years of negotiations, a delay of three weeks is, in my view, tolerable. It is fantastic that we are moving toward concluding the agreement,” she added.

The President of the European Council, Antonio Costa, struck a similar tone. “I don’t like being here at 4 a.m., but I do like the fact that now, after 26 years of negotiations with Mercosur, we have agreed to sign not on Saturday, but three weeks later,” he said. Speaking light-heartedly, Costa remarked that “the world does not lose much with these three weeks after 26 years,” highlighting European unity despite internal differences.

German Chancellor Friedrich Merz confirmed that the European Union already has a promise of a qualified majority to approve the signing of the agreement. He said the expectation had been to leave the meeting with immediate approval, but Italian Prime Minister Giorgia Meloni requested an additional 2 weeks to conduct internal discussions with her government and the Italian Parliament to overcome differences.

Merz noted that, after eight years of the agreement with Canada, bilateral trade increased by 50%, benefiting both sides.

French President Emmanuel Macron, however, warned that it is still too early to say whether a one-month postponement will be sufficient to meet France’s conditions. He advocates stricter measures to curb agricultural imports from Brazil, Argentina, Paraguay, and Uruguay, requiring South American products to meet the same standards as those imposed on European producers. For Macron, this would turn the pact into a “new” agreement—an argument seen as an attempt to demonstrate domestic political strength, even as France appears increasingly isolated.

European agricultural producers argue that the safeguards proposed by the European Union remain insufficient to prevent market disruptions, do not ensure a level playing field given regulatory differences, and fail to provide credible guarantees to EU farmers and manufacturers who already operate under much stricter regulatory and economic constraints.

As usual, meetings of EU leaders were marked by tension and protest. Around 10,000 farmers and more than 150 tractors took to the streets of Brussels. Agricultural leaders were received before the meeting and left, saying, “The struggle continues.”

After lengthy discussions on financing for Ukraine to withstand Russian attacks, the leaders of the 27 Member States moved on to geoeconomic issues, including the Mercosur agreement.

“Tonight, we achieved a decisive breakthrough to pave the way for the successful conclusion of the agreement in January,” Ursula von der Leyen said. According to her, a few more weeks are needed to resolve certain issues with Member States, which is why the signing was slightly postponed by mutual agreement with Mercosur partners.

The head of the European Commission reiterated that the agreement is of “crucial importance for Europe—economically, diplomatically and geopolitically,” as it opens up new trade opportunities for Member States. She also stressed that, with additional controls and safeguards, the EU has incorporated all the protections necessary for farmers and consumers.

Von der Leyen noted that, in a year marked by rising tariffs and new trade restrictions, the agreement’s positive impact is significant not only for the two regions but also for the global economy.

Among Mercosur negotiators, however, frustration with the European delay remains. The argument that Europe lacks sufficient agricultural protection is viewed as weak and largely symbolic. Safeguards would only make sense in the case of broad tariff liberalization, which does not apply to Mercosur’s main products. Concerns over very low quotas are also seen as exaggerated, such as the additional 99,000 tonnes of beef exports, which would amount to about 200 grams per year per European citizen.

In the early hours in Brussels, Ursula von der Leyen said that when she arrived at the European Council meeting in the morning, there was initially no clear path either for the Mercosur agreement or for guaranteed funding for Ukraine. “However, by around 4 a.m., progress had been made, ensuring a clear path for Mercosur and €90 billion in funding for Ukraine over the next two years,” she celebrated.

Source: Valor Econômico

Sharing is caring!