São Paulo, Brazil — Brazilian President Luiz Inácio Lula da Silva declared on November 23 that an economic agreement between South American trade bloc Mercosur and the EU would be officialized on December 20, 2025, following 25 years of ongoing negotiations.
The next Mercosur meeting will be presided by Brazil, and will also be held on December 20.
The announcement was made during President Lula’s trip to the G20 Summit, held from November 22 to 23 at Johannesbourg, South Africa.
“I don’t intend to travel anymore this year, except to Brasília or Foz do Iguaçu to sign the Mercosur-European Union agreement, which I believe will be signed on December 20,” Lula stated.
He also added that the deal will result in the world’s largest free trade zone, encompassing Argentina, Brazil, Paraguay, Uruguay, and the EU’s 27 member states. It also seeks to eliminate trade tariffs to boost strategic trade and political ties between the two regions.
The EU is already Brazil’s second-largest trading partner, with annual trade flows reaching €89.5 billion driven by aircraft, commodities and raw materials.
Author: Ricardo Stuckert via Agência Brasil
Despite President Lula’s optimism, the fate of the EU-Mercosur agreement remains uncertain. The deal still requires the approval from all Mercosur member states- which could happen at the December summit- as well as from the European Parliament.
France pushes back
French President Emmanuel Macron was far from echoing Lula’s sentiment. During his recent visit to Brazil for the COP30 Leaders Summit, Macron told reporters he is “optimistic” but “vigilant”, stressing the need for safeguards to protect French farmers- an issue also raised by the European Commission.
France is the Union’s largest agricultural producer, generating €88.3 billion in total output value, followed by Germany (€75.5 billion), Italy (€70.2 billion) and Spain (€68.7 billion). Such dominance helps explain concerns that increased competition from Mercosur countries could threaten parts of the French agricultural sector.
In fact, the country’s farmers signed an open letter on October 28, urging President Macron and other leaders to oppose the EU-Mercosur trade agreement and build a blocking minority. Over 40 organizations signed the document, claiming that no meaningful changes had been made since December 2024, when the EU and Mercosur agreed on the basis for a final deal.
“Only a legal review and the translation of the agreement have been completed,” the letter states.
Featured image: Brazilian President Luiz Inácio Lula da Silva and French President Emmanuel Macron during a joint statement to the press.
Author: Ricardo Stuckert
Source: Palácio do Planalto via Flickr.
