EU-Mercosur Trade Deal Faces Delays Amid Controversy

The EU-Mercosur trade deal signing has been postponed to January, due to Italy's demand for more time. Initially set for signing by European Commission President Ursula von der Leyen, the agreement faced opposition due to concerns about agricultural imports and economic impacts. Protests and political debates have intensified.

In a significant development for the European Union's trade policies, the signing of the anticipated EU-Mercosur trade deal has been postponed until January, according to EU sources. Originally scheduled for formalization by EU executive chief Ursula von der Leyen, the deal has encountered formidable challenges, primarily due to Italy's eleventh-hour call for a delay.

European Commission President von der Leyen had planned to travel to Brazil for the signing ceremony, contingent upon securing broad approval from EU member states. However, Italian Prime Minister Giorgia Meloni's request for additional time has pushed the event into the new year. Brazilian President Luiz Inacio Lula da Silva emphasized the need for consensus and engagement with Mercosur allies during their summit.

The trade deal, involving Argentina, Brazil, Paraguay, and Uruguay, aims to significantly reduce tariffs and offers potential boosts to European exports. Nevertheless, it has sparked division, with countries like France and Italy expressing concern over agricultural imports. Recent protests, including a violent demonstration in Brussels, underscore the growing tension surrounding the pact.

(With inputs from agencies.)