EU-Mercosur agreement postponed following farmers' demonstration in Brussels

The signing of a trade deal between the European Union (EU) and the South American bloc Mercosur has been postponed until January after farmers staged a violent demonstration against the agreement outside the summit in Brussels.

The European Commission (EC) notified the Mercosur countries of the postponement after the EU's plans to sign the pact this week were scuppered by France and Italy.

The EU-Mercosur agreement would create the world's largest free trade area and help the EU to export more vehicles, machinery, wines and spirits to Latin America at a time when global trade tensions are running high.

But Paris and Rome want tougher protection for their farmers, who fear they will be squeezed out by the flow of cheaper goods from agricultural giant Brazil and its neighbours.

At least 7,000 farmers with around 1,000 tractors staged a protest in the capital's European quarter as EU leaders met to discuss not only the Mercosur deal, but also an initiative to provide funding to Ukraine from frozen Russian funds.

Brazilian President Luiz Inacio Lula da Silva, who initially gave the Europeans a now-or-never ultimatum of approval, on Thursday opened up the possibility of delaying the signing of the deal to persuade opponents.

L.I. Lula da Silva said Italian Prime Minister Giorgia Meloni had asked for his patience and indicated that Rome would eventually be ready to sign the deal.

Speaking in Brussels after the summit, French President Emmanuel Macron said it was too early to say whether Paris would agree to the deal next month and said it needed a major overhaul.

But EC chief Ursula von der Leyen said she was confident the bloc would agree to the deal next month.

„Tonight we have achieved a breakthrough that will lead to the successful finalisation of the agreement with Mercosur in January,“ said the EC chief.

Bullets and tear gas

Germany, Spain and the Nordic countries strongly support the agreement with Mercosur to boost exports as Europe faces competition from China and a pro-tariff White House administration.

U. von der Leyen hoped to get final approval from Member States in time to fly to Brazil on Saturday to attend the signing ceremony.

But with Paris, Rome, Hungary and Poland opposed, critics of the deal had enough clout in the European Council to ensure that it would have been rejected had it been put to a vote.

Italy and France want more robust safeguards, tighter import controls and higher standards for Mercosur producers.

Farmers say the deal would make it easier for less regulated South American producers to bring beef, sugar, rice, honey and soybeans into Europe.

Tensions flared in Brussels on Thursday after a largely peaceful protest involving at least 7,000 farmers.

Riots broke out outside the European Parliament, with protesters lighting bonfires, fireworks, throwing potatoes, bottles and other objects at police, who responded with tear gas and water cannons.

„We are here to say "no" to Mercosur, Belgian dairy farmer Maxime'mabille told AFP, accusing EC President von der Leyen of trying to "impose" the deal.

Farmers are also angry at the EU's plans to overhaul the 27-nation bloc's huge agricultural subsidies, fearing they will receive less money.

Police made several attempts to clear the area. Minor clashes broke out and people were detained, an AFP reporter said.

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