Push for Mercosur-EU Trade Deal Faces New Challenges

Brazilian Finance Minister Fernando Haddad emphasized the importance of finalizing a trade agreement between the EU and Mercosur due to its geopolitical significance. Despite the deal facing renewed opposition from EU countries like France and Italy, discussions with leaders are ongoing to resolve concerns and move forward.

Brazilian Finance Minister Fernando Haddad highlighted the importance of advancing the EU-Mercosur trade agreement during a press conference on Thursday. Approved last December after nearly 25 years of negotiations, the deal remains unsigned amid fresh opposition from France and Italy, who are reluctant to endorse the pact.

In his communication with French President Emmanuel Macron, Haddad stressed that the agreement bears more significance beyond trade, symbolizing a potential reduction in geopolitical tensions. Haddad conveyed to Macron that "the deal was a political chorus," crucial for signaling to the world the importance of not returning to an era where two major blocs remain closed off from each other.

Macron acknowledged the message positively, but insisted on further discussions. Meanwhile, Brazilian President Lula expressed that Italian Prime Minister Giorgia Meloni, while not opposing the deal, required additional time to consider the concerns of local farmers. Subsequent reports suggested that European Commission President Ursula von der Leyen informed EU leaders that the signing of the deal remains postponed.

(With inputs from agencies.)