Headlines
Brazil threatens to abandon Mercosur-EU deal as Italy, France seek delay
Published by Global Banking and Finance Review
Posted on December 17, 2025
1 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 17, 2025
1 min readLast updated: January 20, 2026
Brazil may exit the Mercosur-EU trade deal if not finalized this month, as Italy and France delay support. President Lula da Silva emphasizes urgency.
SAO PAULO, Dec 17 (Reuters) - Brazilian President Luiz Inacio Lula da Silva said on Wednesday that if the trade agreement between the European Union and the South American trade bloc Mercosur is not finalized this month, Brazil will no longer sign off on the deal.
Italy and France earlier in the day said they were not ready to back the agreement, dealing it a blow as European Commission President Ursula von der Leyen had been expected to fly to Brazil at the end of this week to sign the accord.
"If we don't do it now, Brazil won't make this deal anymore as long as I'm president," Lula told a cabinet meeting. "If they say no, we will be tough with them from now on. We gave in to everything that diplomacy could possibly concede."
(Reporting by Gabriel Araujo and Eduardo Simoes; Writing by Isabel Teles)
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and managing the day-to-day operations of the EU.
Mercosur, or the Southern Common Market, is a regional trade bloc in South America that includes Argentina, Brazil, Paraguay, and Uruguay, aimed at promoting free trade and economic integration.
The president of a country often plays a crucial role in negotiating and finalizing trade agreements, representing national interests and making decisions on trade policies.
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