The decision of the European Union to postpone the signing of the agreement with Mercosur, initially scheduled for next Saturday (20), frustrated the government of Luiz Inácio Lula da Silva (PT) and created a failure in the preparations for the summit of the South American bloc in Foz do Iguaçu.
Diplomats from Brazil, Argentina, Uruguay and Paraguay are gathered in the border town to organize the meeting of heads of state scheduled for Saturday (20), when the summit of the European bloc was to seal the treaty negotiated for more than 25 years.
When the postponement was confirmed, this Thursday (18), it was even suggested during a preparatory meeting for the Mercosur summit, of the common market group, a break of a few minutes so that the participants could process the information. The session continued, despite the increasing flow of diplomats in the corridors.
Despite the climate of frustration, Lula’s aides say the result is not a complete disaster, as it leaves the door open for a short-term signing. The next milestone is now expected to be reached in January 2026.
The news was nevertheless considered unpleasant for the Brazilian presidency, which will transfer the rotating leadership of the South American bloc to Paraguay next year. For Lula, the signing of the EU-Mercosur agreement could be added to his international portfolio during an electoral campaign year.
To avoid compromising the agreement, the South Americans avoided reacting to the safeguards approved by the Europeans, even if the rules did not please the bloc, and showed patience in the face of new obstacles so as not to give ammunition to opponents. Lula even publicly declared that the agreement was more favorable to the European Union than to Mercosur.
In terms of safeguards, for example, it was established that an investigation would be opened in the event of a drop in the prices of sensitive products from Mercosur, such as beef and sugar, greater than 8% compared to the three-year average or in the event of an increase in the volume of imports greater than 8% in the same interval.
Even though Mercosur was unhappy, it postponed any conflict on this issue until later. According to Foreign Minister Mauro Vieira, a set of trade guarantees would only be created by the bloc after signing the treaty with the European Union.
Behind the scenes, members of the Lula government release Mercosur from any responsibility in the new impasse and consider the postponement as a reflection of the European bloc’s inability to articulate itself politically. The days leading up to the South American summit were marked by tense negotiations in Europe and public messages from countries opposed and in favor of the treaty.
France is one of the main opponents of the signing of the agreement, facing pressure from its farmers, and obtained the support of Italy on the eve of the final procedures at the European Council, responsible for giving or not the mandate for the signing of the agreement.
A telephone conversation between Lula and the Italian Prime Minister, Giorgia Meloni, was decisive for the postponement. In Brasilia, the head of the Executive said that Meloni had asked for a month to convince Italian farmers to accept the EU-Mercosur agreement.
Lula said he would convey the postponement request to other presidents in the South American bloc. In Brussels, the Brazilian president’s response was interpreted as a sign that Lula would agree to give the Europeans more time, even if, the day before, he had threatened to suspend the agreement discussed 26 years ago if the signature was delayed by the Europeans.
Finance Minister Fernando Haddad also said he had spoken with French President Emmanuel Macron about the agreement between the European Union and Mercosur and defended giving the Europeans a little more time, as requested by the French and Italians.
Hours later, European Commission President Ursula von der Leyen informed the leaders of the European bloc that the treaty would no longer be signed in Brazil on Saturday. Von der Leyen and European Council President António Costa were expected in Foz do Iguaçu to sign the agreement, but requested the trip be canceled.
Marcos Troyjo, who was foreign trade secretary during the negotiation of the basic text of the agreement in 2019, saw the chances of a partnership between the blocs diminishing, even with Europe “sandwiched” by competition between the United States and China.
“Things are becoming more difficult for the Mercosur countries and also for the European Union. It is a big defeat for the European Union not to reach an agreement,” he said. Leaf.
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