EU delays signing of Mercosur free trade deal

The European Union is postponing the signing of a free trade agreement with four Mercosur countries until January, an EU official said on Thursday.

The deal between the EU and Brazil, Argentina, Uruguay and Paraguay, more than 25 years in the making, was due to be signed at a summit in Brazil on Saturday.

The controversial free trade agreement aims to boost trade between the economic blocs, but is viewed critically by some major EU countries, including France, Poland and Italy.

Italian Prime Minister Georgia Meloni, however, said her government would be ready to return to the agreement as soon as the European Commission had provided more reassurance to farmers.

Italy’s support is needed to reach the necessary majority of at least 15 of the 27 EU states, representing 65% of the bloc’s population, backing the deal and paving the way for its signing.