Buenos Aires, Dec. 13 (NA) – Just days from the tentative signing date, the historic free trade agreement between Mercosur and the European Union (EU) is facing a new and unexpected delay, with the Brazilian government directly pointing to France as the main obstacle. Brazilian Vice President and Minister of Development, Industry, Trade and Services, Geraldo Alckmin, revealed this Friday that Paris is exerting pressure to postpone the signing of the understanding due to deep differences over the agricultural chapter, which has been the most sensitive point during more than two decades of negotiations.
Is the December 20 deadline off the table? Despite the French maneuver, Brazil remains optimistic. Alckmin stated that the base scenario is still the signing on December 20, 2025, during the Mercosur summit in Foz do Iguaçu (triple border with Paraguay and Argentina). However, the vice president admitted the possibility of a brief extension imposed by Paris. "Proximity is important for more sustainable development," Alckmin declared during an International Leaders Seminar in São Paulo. On December 20, Brazil must transfer the bloc's rotating presidency (also integrated by Argentina, Bolivia, and Uruguay) to Paraguay.
Fear of the Brazilian agribusiness The French resistance is due to the competitiveness of the Brazilian agribusiness. "France is always cautious," the vice president signaled, alluding to the subsidies the Gallic country grants to its own rural producers. If finalized, the EU-Mercosur pact would create the world's largest free trade zone, but its immediate fate now seems to depend on France's political will to yield on protections for its primary sector.
"France's move is to try to push (the signing) to January, but if it is not signed now, it will be signed right away," Alckmin indicated. He pointed out that Europe has "a little apprehension" towards Brazil's production.
