A possible delay in signing the free trade agreement between Mercosur and the European Union (EU) may enable the conclusion of the treaty that has been under negotiation for more than two decades, said Finance Minister Fernando Haddad on Thursday (Dec. 18). More time is needed to reassure European farmers that they will not be negatively affected, he argued.

“It is worth insisting a little more on my perception. Because, first, there is no harm. There is no harm to Italian and French farmers. There is none,” the minister stated.

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The statement was made during an afternoon coffee break with journalists, before the European Commission officially announced the postponement of the agreement’s signing until January. France and Italy still face resistance from their farmers.

The agreement had been scheduled to be formalized this Saturday (20) during the Mercosur summit in Foz do Iguaçu, Paraná state, but faced resistance from European countries, especially France and Italy, due to pressure from farmers opposed to the pact.

At the meeting with journalists, Haddad said he sent a message to French President Emmanuel Macron, highlighting that the agreement goes beyond the commercial aspect and has geopolitical relevance.

The minister pointed out there is no economic damage to French and Italian farmers, as the negotiated text provides safeguards. He attributed part of the resistance to the political exploitation of internal sensitivities. “This does not correspond to the content of the agreement,” he said. Haddad said that if Europeans need “a little time” to clarify the issue to the public, “it is worth waiting.”

Meloni

Earlier, President Luiz Inácio Lula da Silva said he had spoken by phone with Italian Prime Minister Giorgia Meloni. According to Lula, she is not against the agreement, but faces internal political difficulties and has asked for up to a month to convince Italian farmers. “She asked for patience for a week, ten days, a month at most,” said the president.

Negotiated for over two decades, the Mercosur–EU agreement would create one of the largest free trade areas in the world – bringing together some 722 million consumers and a combined GDP of approximately USD 22 trillion.