Brazilian president says it is now or never after Italy joins France in saying it is not ready to sign trade deal.
Published On 17 Dec 2025
Brazilian President Luiz Inacio Lula da Silva has warned he may abandon a long-awaited trade deal between members of the South American bloc Mercosur and the European Union after key countries sought a delay.
The Brazilian leader issued the threat on Wednesday after Italy joined fellow heavyweight France in saying it was not ready to commit to the pact to create the world’s biggest free-trade area.
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The EU had expected its 27 member states to approve the deal in time for European Commission President Ursula von der Leyen to fly to Brazil to sign an agreement with the host, along with Mercosur partners Argentina, Paraguay and Uruguay, on Saturday.
“I’ve already warned them: If we don’t do it now, Brazil won’t make any more agreements while I’m president,” Lula told a cabinet meeting.
“We have given in on everything that diplomacy could reasonably concede.”
‘Premature’ to sign: Meloni
The deal, more than two decades in the making, has been keenly backed by economic powerhouse Germany, along with Spain and the Nordic countries, amid rising Chinese competition and recent United States tariffs, which have increased the incentive to diversify trade.
It would allow the EU to export more vehicles, machinery, spirits and wine to Latin America, and more beef, sugar, rice, honey and soya beans to flow in the opposite direction.
France, eager to protect its agriculture industry, had already called for a delay on a vote to approve the deal, and gained the support necessary to potentially block the agreement when Italian Prime Minister Giorgia Meloni said on Wednesday that Rome was also not ready.
“It would be premature to sign the deal in the coming days,” she told parliament, saying that some of the safeguards Italy is seeking on behalf of farmers were yet to be finalised.
She said Italy did not seek to block the deal altogether, and was “very confident” that her government’s concerns would have been addressed to allow it to be signed early next year,
French President Emmanuel Macron told a cabinet meeting on Wednesday that his government would “firmly oppose” any attempts to force through the deal.
Hungary and Poland are also lukewarm on the agreement.
By contrast, German Chancellor Friedrich Merz said Wednesday he would push “intensively” for the bloc to approve the deal by the year’s end, in what he described as a test of the EU’s “ability to act”.
EU reaches agreement on agricultural safeguards
In an effort to allay some of the concerns, the EU struck a provisional deal on Wednesday to set tighter controls on imports of farm products, amid a background of farmer protests against the deal.
It determined the trigger for launching an investigation into such imports if import volumes rose by more than 8 percent per year or prices fell by that amount in one or more EU members.
EU leaders will discuss the matter at a Brussels summit on Thursday, a commission spokesman said.
