Brussels — The European Commission has announced that the signing of the long-awaited trade agreement between the European Union and Mercosur will be postponed until January, after Italian Prime Minister Giorgia Meloni requested additional time to secure stronger protections for farmers.

Following tense negotiations among the EU’s 27 member states, Commission President Ursula von der Leyen confirmed on Thursday that the signature of the controversial agreement would be delayed, frustrating key supporters such as Germany and Spain. No new date has yet been set.

The Mercosur deal dominated discussions at the EU summit, with France and Italy pushing for a delay to obtain additional safeguards for their agricultural sectors. Von der Leyen had initially hoped to travel to Latin America for a signing ceremony on 20 December after securing sufficient backing among member states, but the lack of final approval has made that impossible.

“The Commission proposed postponing the signature to early January in order to further discuss with countries that still need a bit more time,” an EU official told reporters.

After a phone call with Brazilian President Luiz Inácio Lula da Silva, Meloni said she supports the agreement in principle but stressed that Italy requires firmer guarantees for its farmers. Lula, speaking separately, said Meloni had assured him the deal could be approved within 10 days to a month.

The agreement would establish a vast free-trade area between the EU and Argentina, Brazil, Paraguay and Uruguay. However, many European farmers fear it would expose them to unfair competition from Latin American agricultural imports, particularly over pricing, environmental standards and production practices.

Italy’s role proves decisive

Meloni’s position proved pivotal in delaying the process. “The Italian government is ready to sign the agreement as soon as the necessary answers are provided to farmers,” she said, adding that the matter depends on decisions by the European Commission and could be resolved within a short timeframe.

Negotiations among EU leaders were particularly fraught, as supporters of the deal — concluded in 2024 after 25 years of talks — argued that Mercosur is strategically vital at a time when the EU urgently needs to diversify export markets. The United States, the bloc’s largest trading partner, has adopted an increasingly aggressive tariff policy, with duties on European exports tripling under President Donald Trump.

“This is one of the most difficult EU summits since the last long-term budget negotiations two years ago,” an EU diplomat said.

France, which has long opposed the deal, intensified pressure last Sunday for a delay amid mounting anger from farmers. Paris continues to demand robust safeguards and full reciprocity on environmental and health standards. France, Poland and Hungary oppose the agreement, while Austria and Belgium had planned to abstain if a vote were held this week. Ireland has also voiced concerns.

The agreement requires a qualified majority for approval, making Italy’s stance crucial.

Supporters now fear that further hesitation could prompt Mercosur countries to abandon the agreement altogether after decades of negotiations. After speaking with Meloni, Lula said he would relay Italy’s request to Mercosur so the bloc can “decide what to do.”

An EU official confirmed that contacts with Mercosur countries remain ongoing. “We need to make sure that everything is accepted by them,” the official said.