Berliner Tageblatt - Brazil's Lula asks EU to show 'courage' and sign Mercosur trade deal

Argentina, Brazil, Paraguay and Uruguay had hoped they would on Saturday finally seal a deal with the EU to create the world's largest free trade zone, as did EU Chief Ursula von der Leyen and most of the bloc's member states.

However, the deal met with fierce opposition from farmers, notably in France and Italy, and has now been postponed to January.

"Without political will and courage on the part of leaders, it will not be possible to conclude negotiations that have dragged on for 26 years," Lula said in his opening speech at the Mercosur summit in Foz do Iguacu.

"We have in our hands the opportunity to send the world an important message in defense of multilateralism, and to reinforce our strategic position in a global environment that is more and more competitive," Lula told attendees.

"But, unfortunately, Europe has not yet made its decision."

The leftist Brazilian president said he had received a letter from EU leaders expressing confidence that the deal would be approved in January.

One source in the European Commission and two diplomats who asked not to be named said the new expected signing date was set for January 12 in Paraguay. Negotiations first began in 1999.

But Paraguayan Foreign Minister Ruben Ramirez said neither he nor his Brazilian counterpart Mauro Vieira was aware of any "official communication" on the matter.

The agreement would help the European Union export more vehicles, machinery, wines and spirits to Latin America.

In return, it would facilitate the entry into Europe of South American meat, sugar, rice, honey and soybeans.

Some EU nations, such as Germany and Spain, are excited about a pact that could help boost exports at a time of global trade tensions.

- European farmers displeased -

But the proposed deal has provoked anxiety among farmers who fear they will be undercut by a flow of cheaper goods from agricultural giant Brazil and its neighbors.

Thousands of farmers protested the deal outside a Brussels meeting of EU leaders on Thursday, rolling around 1,000 honking tractors into the city.

Protesters lit fires and hurled potatoes and other objects at the police, who responded with tear gas and water cannon.

The Mercosur meeting started Friday with ministerial talks in southern Brazil's Foz do Iguacu, home to one of the world's largest waterfall systems on the border with Argentina.

Aside from Lula, Uruguayan President Yamandu Orsi, Paraguay's Santiago Pena, and Argentina's President Javier Milei were attending the summit, along with Jose Raul Mulino of Panama, which has associate member status.

Bolivia is the newest full member of Mercosur, but is not part of the trade deal.

J.Fankhauser--BTB