The European Union has postponed the signing of a long-negotiated free trade agreement with four Mercosur countries: Brazil, Argentina, Paraguay, and Uruguay. Originally planned for December 2025 at a summit in Brasília, the deal has been delayed until January following requests from Italy’s Prime Minister Giorgia Meloni and amid growing opposition from France, Italy, Poland, and Hungary. German Chancellor Friedrich Merz and EU Commission President Ursula von der Leyen expressed confidence the deal would ultimately be approved, despite the delay. Brazil’s President Luiz Inácio Lula da Silva agreed to grant the EU extra time. The Mercosur agreement aims to create the world’s largest trade zone for over 720 million people by eliminating tariffs on more than 90% of traded goods. However, European farmers fear unfair competition from Mercosur agricultural products, while the German industry emphasizes the economic importance of finalizing the agreement. Recent negotiations included new safeguards for agricultural imports to address European concerns. Demonstrations by farmers in Brussels protested against the deal during the EU summit.

Source: https://www.dw.com/de/eu-verschiebt-freihandelsabkommen-mit-vier-mercosur-staaten/a-75239347?maca=de-rss-de-top-1016-xml-mrss