Lula tells EU it’s now or never for Mercosur trade deal

Brazil President Luiz Inácio Lula da Silva urged the European Union to finalise a massive trade agreement with Mercosur member states, telling still-hesitant leaders that the deal won’t happen on his watch if it doesn’t get done now.

“I’ve already made it clear that if we don’t finalise this agreement now, Brazil won’t pursue the trade deal during my presidency,” Lula said during a cabinet meeting in Brasília on Wednesday, just days before hosting a summit where leaders from the EU and Mercosur aim to sign the pact.

The EU has been racing to finalise the accord with Mercosur, the bloc of nations formed by Brazil, Argentina, Uruguay and Paraguay, ahead of a signing ceremony tentatively scheduled for Saturday. 

But Italian Prime Minister Giorgia Meloni cast doubt on its immediate future earlier Wednesday, saying that her government isn’t ready to ink the agreement.

France has also been pushing to delay the finalisation of the accord that has been in the works for more than two decades.

The deal cleared a key technical hurdle Tuesday, when the European Parliament approved measures to protect the continent’s farmers. But the pushback is likely to make it harder for the EU to approve it in time.

Lula, who has made the agreement a centrepiece of efforts to bolster Mercosur and diversify its trade partnerships, expressed frustration with European leaders including Meloni and France’s Emmanuel Macron, with whom he has enjoyed strong relations.

“I moved the meeting to December 20 at the EU’s request,” he said. “Now I’m being told they won’t be able to approve it after all. The situation is very difficult: Italy and France are blocking the deal because of their domestic political issues.”

“Macron is resisting because of pressure from French farmers,” he continued. “Italy is opposed for reasons that I don’t know.”