Wed Dec 17 22:58:43 UTC 2025: ## Lula Issues ‘Now or Never’ Ultimatum on EU-Mercosur Trade Deal

Brasilia, Brazil – Brazilian President Luiz Inacio Lula da Silva has issued a stern warning, stating he may abandon the long-sought-after trade agreement between the South American bloc Mercosur and the European Union if it isn’t finalized soon. His ultimatum comes after Italy joined France in expressing reluctance to sign the deal, jeopardizing its near-finalization.

The proposed agreement, aimed at creating one of the world’s largest free-trade zones, has been under negotiation for over two decades. The EU had hoped to secure approval from its 27 member states and have European Commission President Ursula von der Leyen sign the agreement with Lula and Mercosur partners on Saturday.

“I’ve already warned them: If we don’t do it now, Brazil won’t make any more agreements while I’m president,” Lula stated in a cabinet meeting, emphasizing the concessions Brazil has already made.

While economic powerhouses like Germany, Spain, and the Nordic countries strongly support the deal, viewing it as crucial for diversifying trade amid rising Chinese competition and US tariffs, France and Italy are raising concerns, particularly regarding the impact on their agricultural sectors.

French President Emmanuel Macron has voiced strong opposition to rushing the deal, while Italian Prime Minister Giorgia Meloni cited the need for further safeguards for Italian farmers, suggesting a signing in early 2024 instead.

However, Lula’s government appears to be losing patience. Germany, through Chancellor Friedrich Merz, is actively pushing for the EU to approve the agreement by year-end, deeming it a crucial test of the bloc’s ability to act.

In an attempt to address concerns, the EU has provisionally agreed to tighten controls on farm product imports, including triggering investigations if import volumes rise by more than 8% annually or prices drop by a similar amount in member states.

EU leaders are set to discuss the future of the agreement at a Brussels summit on Thursday. The fate of the EU-Mercosur deal now hangs in the balance, with Lula’s ultimatum raising the stakes for all involved.

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