Lula Warns of Brazil's Withdrawal from EU-Mercosur Deal

President Lula of Brazil has announced that unless the EU-Mercosur trade agreement is finalized this month, Brazil will withdraw from the negotiations. Italy and France's reluctance threatens the accord, which the European Commission was set to sign imminently.

Brazilian President Luiz Inacio Lula da Silva issued a stern warning on Wednesday: If the EU-Mercosur trade agreement isn't concluded by the end of the month, Brazil will walk away from the deal.

This ultimatum came as Italy and France expressed hesitance to endorse the trade pact, undermining anticipated plans for European Commission President Ursula von der Leyen to visit Brazil to sign the agreement.

"We must act now, or we will abandon the negotiations as long as I hold office," Lula declared. "Should they refuse, our stance will shift significantly. We have already made all possible diplomatic concessions."

(With inputs from agencies.)