Mercosur leaders press for progress on stalled EU trade deal

The bloc’s members, Argentina, Brazil, Paraguay and Uruguay, had hoped to conclude the pact at the December gathering, but disagreements among EU member states have delayed key decisions.

The proposed EU-Mercosur agreement is designed to create one of the world’s largest free trade zones, encompassing a market of around 780 million people and a significant share of global gross domestic product. It aims to progressively eliminate tariffs on the majority of goods traded between the two regions, expanding access for agricultural and industrial exports on both sides.

However, European opposition, particularly from France and Italy, has complicated efforts to finalise the deal. Member states have sought stronger safeguards for sensitive sectors such as agriculture, and intense negotiations at recent summits have pushed the expected signing into January. European Commission officials have said the extra time is needed to secure the necessary political support among the EU’s 27 countries.

The delay has not dampened optimism among some Mercosur leaders. Brazilian President Luiz Inácio Lula da Silva said the negotiations would continue and stressed the importance of political will in achieving an agreement, with Paraguay set to assume the bloc’s pro-tempore presidency in 2026. He also suggested that the world is watching the process and that Mercosur would pursue alternative partnerships if progress stalls.

Observers see the discussions as part of a broader global context in which regional blocs seek deeper economic links amid shifting trade dynamics. Finalising the Mercosur-EU deal would send a signal about the strength of multilateral trade cooperation at a time when global supply chains and strategic partnerships are under pressure from geopolitical tensions and competing economic interests.