EU delays Mercosur trade deal as farmer protests and French-Italian pushback bite

The European Union has hit the brakes on its long-gestating free-trade agreement with South America, postponing the signing of the EU-Mercosur deal until January amid mounting farmer protests and last-minute resistance from France and Italy.

European Commission chief spokesperson Paula Pinho confirmed on Thursday that the deal, which has taken roughly 25 years to negotiate, will not be signed this month as planned. Commission President Ursula von der Leyen had been due to travel to Brazil on Saturday to formalise the agreement, but failed to secure the broad political backing required from EU member states.

According to the Associated Press, the delay was agreed after talks between von der Leyen, European Council President Antonio Costa and Italian Prime Minister Giorgia Meloni on the sidelines of an EU summit in Brussels. Italy’s support for the deal was reportedly secured in exchange for pushing the signing into January.

France also played a central role in stalling the agreement. President Emmanuel Macron publicly urged caution as he arrived at the summit, calling for more discussions and additional concessions early next year. He said he had been coordinating with leaders from Italy, Poland, Belgium, Austria and Ireland.

“Farmers already face an enormous amount of challenges,” Macron said, framing the delay as a response to domestic agricultural pressure.

The EU-Mercosur pact, covering Argentina, Brazil, Bolivia, Paraguay and Uruguay, would be the bloc’s largest trade agreement in terms of tariff reductions. Supporters, including Germany, Spain and the Nordic countries, argue it would boost European exports of vehicles, machinery, wine and spirits, while helping reduce reliance on China and offset the impact of US tariffs.

Opponents, led by France and Italy, warn the deal would open the door to a surge of cheaper agricultural imports that could undercut European farmers already squeezed by rising costs and tighter environmental rules.

Mercosur countries were informed of the delay, a Commission spokeswoman said. Brazil initially pushed a now-or-never line but softened its stance on Thursday.

President Luiz Inacio Lula da Silva said Meloni had asked him for “patience” and signalled Italy would ultimately back the deal.

The decision to delay came just hours after large-scale farmer protests erupted in Brussels. Demonstrators drove tractors into the city, blocked roads, set off fireworks and clashed with police, who responded with tear gas and water cannon.

Farmers, some travelling from Spain and Poland, hurled potatoes and eggs, burned tyres and displayed a mock coffin labelled “agriculture”. Parts of the European Parliament were evacuated after damage caused during the unrest.