UPDATE: Brazil’s President Luiz Inácio Lula da Silva has just announced an ambitious goal to finalize the long-awaited EU-Mercosur trade deal by January 2024. This announcement comes amid rising tensions and protests from European farmers, putting immense pressure on negotiations that have been ongoing for over 26 years.
During a summit in Foz do Iguaçu, Brazil, Lula expressed his hope that the massive free-trade agreement would be signed soon, despite recent setbacks. European Commission President Ursula von der Leyen confirmed that the planned signing, originally set for this weekend, will face delays of “a few extra weeks” as member states address ongoing concerns.
Protests erupted on Friday, driven by opposition from key EU countries, particularly France and Italy. These protests have threatened to derail the agreement, which aims to create a combined market of 780 million people and significantly reduce tariffs on goods traded between the EU and Mercosur nations: Brazil, Argentina, Uruguay, Paraguay, and Bolivia.
Lula addressed fellow South American leaders, stating that the summit was convened based on earlier assurances from European negotiators that a deal was forthcoming. However, this optimism is now clouded by Italian Premier Giorgia Meloni‘s request for additional time to consider farmers’ concerns, which has complicated negotiations significantly.
“Without political will and courage from leaders, it won’t be possible to finish a negotiation that has dragged for 26 years,” Lula remarked, emphasizing the need for decisive action from EU leaders.
As negotiations continue, Lula underscored the urgency of finalizing the trade deal, noting that “the world is eager to make deals with Mercosur.” He expressed confidence that Brazil and its partners could pursue alternative agreements if the EU negotiations falter.
Compounding the situation, French President Emmanuel Macron announced at an EU summit that he would not commit to supporting the deal next month, indicating potential roadblocks ahead. Macron’s concerns regarding the impact on European farmers echo sentiments expressed by multiple EU leaders, including those from Italy, Poland, Belgium, Austria, and Ireland.
Lula remains resolute, stating, “Let’s hope that things happen for the good of our Mercosur, multilateralism, and the development of our countries.” The Brazilian president’s call for unity and progress highlights the critical nature of these negotiations not just for Brazil, but for the economic future of the entire region.
As the situation develops, all eyes will be on the upcoming discussions between EU leaders and member states. The resolution of these trade talks could have profound implications for trade dynamics between Europe and South America, impacting millions and shaping economic policies for years to come.
Stay tuned for further updates as this story unfolds.
