Lula threatens to walk away if further delays to EU-Mercosur trade deal

Al JazeeraCenterEN 2 min read 75% complete by By News AgenciesDecember 17, 2025 at 11:58 PM

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Brazilian President Lula da Silva threatened to abandon the long-awaited EU-Mercosur trade deal after Italy joined France in seeking a delay. The deal, aimed at creating the world's largest free-trade area, has been in development for over two decades. Lula stated that Brazil has conceded all reasonable diplomatic points and will not pursue further agreements under his presidency if this deal fails. The EU had hoped to finalize the agreement, allowing increased exports of vehicles and machinery to Latin America, while Mercosur countries would export agricultural products to Europe. France and Italy are hesitant due to concerns about protecting their agricultural sectors, seeking further safeguards before committing to the agreement.

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eu-mercosur trade deal 100% trade agreement 80% free-trade area 70% trade negotiations 60% lula 60% france 50% italy 50% tariffs 40% agriculture industry 40%

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Al Jazeera

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eu-mercosur trade deal trade agreement free-trade area trade negotiations lula france italy tariffs agriculture industry

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