President reveals request for postponement by leaders of the European bloc and warns that Mercosur will continue to seek new trading partners
During the Summit held this Saturday (20) in Foz do Iguaçu (PR), President Luiz Inácio da Silva adopted a tough tone when addressing the impasse in the negotiations for the free trade agreement between the South American bloc and . In his speech to the heads of state present, Lula attributed the failure to conclude the treaty to the lack of decision by European leaders, specifically motivated by agricultural protection measures.
After 26 years of negotiations, the diplomatic expectation was that the agreement would finally be sealed during this meeting. However, according to the Brazilian president, the final text was not signed because Europe requested more time.
“Unfortunately, Europe has not yet made up its mind. European leaders have asked for more time to discuss additional agricultural protection measures,” declared Lula. The president was emphatic in stating that Mercosur did its part, accepting quotas and safeguards, and that the moment required firmness from the leaders of the old continent. “Without the political will and courage of the leaders, it will not be possible to conclude a negotiation that has been going on for 26 years”, he added.
Promise for January and search for new markets
Despite his frustration with the postponement, Lula revealed that he had received a letter last Friday (19) from the presidents of the European Commission and the European Council. In the document, the authorities expressed the expectation that the agreement will be approved in January 2026.
The Brazilian president, however, signaled that Mercosur will not remain stagnant and wait for the Europeans. In a direct message about the diversification of the external agenda, Lula listed progress with other blocs and nations, citing the agreement signed in September with EFTA (European Free Trade Association), in addition to ongoing negotiations with India, the United Arab Emirates, Canada, Japan and Vietnam.
“Meanwhile, Mercosur will continue working with other partners”, guaranteed Lula, reinforcing that diversifying partnerships is essential for the region’s economic resilience.
Historical context
Negotiations between Mercosur (Brazil, Argentina, Paraguay and Uruguay) and the European Union formally began in 1999. In 2019, the blocs announced a general political agreement, but final ratification stalled in the following years due to new environmental requirements from Europe and concerns from countries like France regarding the impact of the entry of South American agricultural products into their domestic market.
Lula’s speech this Saturday reinforces Brazil’s position that environmental requirements cannot serve as a pretext for trade protectionism, highlighting that the current understanding was already “advantageous for both sides”.
