German Chancellor Friedrich Merz and European Commission President Ursula von der Leyen expressed confidence that the agreement could be signed after a brief pause. The signing, originally planned for late December during von der Leyen’s visit to Brazil, was postponed after Italy requested additional time for internal consultations, depriving the European Commission of the necessary majority of member states’ support.
Speaking after the summit, von der Leyen described the situation as a “breakthrough,” noting that the EU and its Mercosur partners had agreed to “slightly postpone” the signing in order to address remaining concerns among member states. According to her, the additional few weeks should allow outstanding issues—primarily related to agriculture—to be resolved.
Italy key to a majority, France remains among the sceptics
Italian Prime Minister Giorgia Meloni said Rome is ready to support the agreement once agricultural concerns are addressed, which she said could happen quickly. Germany considers a few extra weeks for Italy’s internal procedures unproblematic and believes this opens the way to signing the deal in January. Berlin also hopes that, under these conditions, France may reconsider its position.
By contrast, French President Emmanuel Macron said Paris is “not satisfied” with the current version of the pact. France insists on the principle of reciprocity and robust safeguards for farmers, so that imports are not produced under weaker environmental and sanitary rules, including pesticide use. Ongoing farmer protests in France have intensified political pressure on the government.
Protests and safeguards
The EU summit was accompanied by large-scale protests in Brussels, with around 7,000 participants—mostly farmers—demonstrating against the agreement. Some protests escalated into clashes with police. Against this backdrop, the European Parliament and EU governments have agreed on preliminary safeguards for “sensitive” agricultural products, such as beef and sugar, while the European Commission is preparing a declaration on aligning production standards.
Why the deal matters
The agreement with Argentina, Brazil, Paraguay and Uruguay is the result of nearly 25 years of negotiations and could become the EU’s largest trade pact in terms of tariff reductions. Supporters, including Germany, Spain and Nordic countries, see it as a tool to support exports hit by U.S. tariffs and to reduce dependence on China by securing access to critical minerals. Opponents fear an influx of cheap agricultural goods and increased pressure on European farmers.
Approval requires the support of at least 15 EU countries representing 65% of the bloc’s population. Italy’s position remains pivotal. If Rome backs the agreement in January, the chances of signing it will increase significantly; if France’s opposition persists, the negotiations could once again reach a deadlock.
PigUA.info, based on materials from thepigsite.com