The Dec. 20 Mercosur summit held in Foz do Iguazu, Brazil, chaired by outgoing President Pro Tem Luiz Inacio Lula da Silva, was a tense affair. Attendees were deeply disappointed that the European Union has postponed until January the signing of the long-anticipated agreement with the Mercosur, which has been negotiated for 25 years, due to intense disagreements within the European bloc. European Commission President, Ursula Von der Leyen, had been scheduled to attend but of course didn’t show up.
The Brazilian President is a big supporter of the deal, emphasizing Mercosur’s great economic potential—its ability to produce enormous quantities of food, possessing a wealth of raw materials, critical minerals, etc. Of course, European farmers aren’t enthusiastic about the thought of a large influx of food coming into Europe from the Mercosur countries. Disappointment was widespread among all the attendees, including the four original permanent members (Argentina, Brazil, Uruguay and Paraguay), plus associate or observer nations Bolivia, Panama, Ecuador and Peru. Argentine President Javier Milei, who thinks Mercosur in its current customs union form is worthless, appeared unconcerned that the deal with the EU is temporarily off the table.