Lula asks EU to show 'courage' and sign Mercosur trade deal

SAO PAULO

Brazilian President Luiz Inacio Lula da Silva on Dec. 20 urged the European Union to show "courage" and sign a trade deal with the South American Mercosur bloc.

Argentina, Brazil, Paraguay and Uruguay had hoped they would on Dec. 20 finally seal a deal with the EU to create the world's largest free trade zone, as did EU Chief Ursula von der Leyen and most of the bloc's member states.

However, the deal met with fierce opposition from farmers, notably in France and Italy, and has now been postponed to January.

"Without political will and courage on the part of leaders, it will not be possible to conclude negotiations that have dragged on for 26 years," Lula said in his opening speech at the Mercosur summit in Foz do Iguacu.

"But, unfortunately, Europe has not yet made its decision,” he added.

Lula said he had received a letter from EU leaders expressing confidence that the deal would be approved in January.

One source in the European Commission and two diplomats said the new expected signing date was set for Jan. 12 in Paraguay. Negotiations first began in 1999.

The agreement would help the European Union export more vehicles, machinery, wines and spirits to Latin America.

In return, it would facilitate the entry into Europe of South American meat, sugar, rice, honey and soybeans.

Some EU nations, such as Germany and Spain, are excited about a pact that could help boost exports at a time of global trade tensions.

But the proposed deal has provoked anxiety among farmers who fear they will be undercut by a flow of cheaper goods from agricultural giant Brazil and its neighbors.

Thousands of farmers protested the deal outside a Brussels meeting of EU leaders on Dec. 18, rolling around 1,000 honking tractors into the city.