New postponement

During the European Council meeting on Thursday 18, the leaders of the 27 EU member states decided to postpone the conclusion of the Mercorsur agreement until January, instead of signing it on December 20 as planned.

There is confidence that there will be a sufficient majority for approval, although it is recognized that some states still need time to work out the details.

A letter signed by Ursula von der Leyen and António Costa to the Brazilian president, dated December 19, reaffirms the EU’s commitment to sign the agreement in early January (expected on 12-13), regretting the delay due to pending internal procedures of the European Council.

Mercosur’s position

Mercosur countries share frustration at the delay, but accept a short postponement while warning against indefinite delays or excessive European safeguards.

The Mercosur summit, scheduled for this Saturday, December 20 in Foz do Iguaçu, Brazil, will be held as planned to advance the bloc’s internal agenda, while discussing the impact of the European delay and exploring alternatives if Brussels delays the process again.

• Brazil, as the main promoter, sees the agreement as a strategic pillar of its foreign policy: Lula had hardened the tone with an ultimatum, but after a call with Giorgia Meloni he agreed to wait a few weeks, although he insists that Brazil has already given enough and is willing to pivot towards partners such as Canada, the UK or Asia if the EU imposes more safeguards or delays that “empty” the pact.
• Argentina accompanies the Brazilian push with commercial pragmatism, prioritizing preferential access for its agri-food and manufactured goods despite the personal frictions between Milei and Lula. Buenos Aires observes with caution the European demands for limits on meat, poultry or sugar, but seeks to dissociate ideological differences from the economic benefits of the treaty.
• Paraguay, which holds the presidency of the bloc, warns that another delay could “exhaust” the process, especially because it fears that the new safeguard clauses will slow down the agricultural export boom it expects from the pact with the EU.
• Uruguay tolerates a short postponement, but not an indefinite one. Montevideo sees the agreement as a consolidation of its trade strategy and recalls its willingness to explore bilateral treaties if Mercosur is stuck any longer.