Von Der Leyen: No Mercosur Deal This Side of New Years

Supporters of the deal fear the delay can embolden opposition and bring complications when Paraguay takes over the chair from Brazil.

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Tractors lining the streets of Brussels on 18 December 2025 to let the European Council know their opposition to the trade deal with Latin America.

Javier Villamor

Supporters of the deal fear the delay can embolden opposition and bring complications when Paraguay takes over the chair from Brazil.

European Commission President Ursula von der Leyen told EU leaders on Thursday that the planned signing of the EU–Mercosur trade agreement will be delayed until next month, missing a previously scheduled Saturday deadline, EU diplomats told AFP.

Von der Leyen said Brazilian President Luiz Inácio Lula da Silva agreed to a request from Italian Prime Minister Giorgia Meloni to postpone the signing, allowing Rome time to work on getting the domestic support of farmers concerned about being undercut by lower-cost imports produced without cumbersome EU regulations, one diplomat said.

Meloni’s joining with the French opposition to the deal upended plans to have it signed on Dec. 20 with Mercosur members Brazil, Argentina, Uruguay, and Paraguay.

Countries backing the agreement, led by Germany, have warned that any further delay could jeopardize the deal altogether, giving opponents of the agreement more time to build momentum. In addition, Paraguay, which has expressed skepticism of the agreement, takes over the rotating Mercosur presidency from Brazil at the end of the year, which could throw another monkey wrench in the works.

Whether Thursday’s massive farmers’ protest in Brussels had any impact on the decision is not known.

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