EU postpones Mercosur trade deal signing to January amid farmer protests

European Commission President Ursula von der Leyen announced Thursday evening that the signing of the EU-Mercosur free trade agreement will be postponed from Saturday to January, a decision that came after sustained pressure from France and Italy over agricultural protections.

Von der Leyen communicated the delay to EU leaders gathered at a summit in Brussels during a dinner focused on geoeconomics and EU competitiveness, according to European sources. The agreement, under negotiation for more than 25 years, had been scheduled for signature Saturday in Brazil alongside a Mercosur summit in Foz do Iguaçu.

France and Italy had requested the postponement to secure additional safeguards for their agricultural sectors. Italian Prime Minister's office had frozen the agreement in the afternoon, establishing an unprecedented alignment with French President Emmanuel Macron. Both governments stated they needed "necessary responses to farmers," reciprocity guarantees, and additional time before proceeding.

The delay frustrated Brazil's government under President Luiz Inácio Lula da Silva. Diplomats from Brazil, Argentina, Uruguay, and Paraguay were gathered in Foz do Iguaçu to prepare for Saturday's Mercosur summit when the postponement was confirmed Thursday. During a preparatory meeting, participants were given a brief pause to process the announcement, though the session continued despite growing frustration and increased movement of diplomats in the corridors.

Brazilian officials said the outcome was not a complete disaster, as it leaves the door open for future negotiations. European sources indicated that while no specific date has been set, the intention is for the agreement to be signed "as soon as possible" at the "beginning" of January.

The postponement decision came amid large-scale farmer protests in Brussels. Approximately 10,000 farmers and nearly 1,000 tractors from across Europe, including significant representation from Spain's Andalusia region, blocked central Brussels on Thursday to oppose both cuts to the Common Agricultural Policy (CAP) and the Mercosur trade agreement. Protesters began arriving Wednesday evening and blocked several road entrances to the capital, causing traffic congestion throughout the city.

Spanish agricultural organizations including Asaja, COAG, UPA, and Cooperativas Agro-Alimentarias participated in the demonstration, emphasizing the risks the agreement posed to European agriculture. Farmers from Belgium, Poland, and Ireland also joined the protests. The demonstrations coincided with the EU summit, which was not originally scheduled to address the Mercosur agreement but was forced to do so due to the political pressure from member states and agricultural constituencies.

Von der Leyen had sought to build momentum for the agreement earlier Thursday, urging EU member states to give "definitive green light" to the signing. She emphasized that excessive dependencies were obstacles to competitiveness and could only be addressed through a network of free trade agreements. However, her appeals did not overcome the resistance from France and Italy, which prioritized agricultural concerns over the broader trade objectives.