EU-Mercosur Deal Nears as Italy Drops Opposition

After more than 25 years of complex negotiations, the European Union appears poised to finally sign a landmark trade agreement with the Mercosur bloc. The deal faced a significant hurdle in late 2025 when Italy forced a postponement of the signing, which had been scheduled for December 20. At that time, Rome expressed strong reservations regarding the terms of the agreement.

However, the political landscape has shifted rapidly. Recent reports indicate that Italy has successfully overcome its previous reluctance to endorse the pact. This change in stance is attributed to specific assurances provided by the European Commission regarding the agricultural sector. With these concerns seemingly addressed, the path is now clearing for the European Union to rubricate the accord with the South American trade alliance.

The road to this agreement has been exceptionally long and fraught with difficulty. The trade negotiations between the European Union and Mercosur have spanned over two and a half decades. Throughout this period, the discussions have experienced several notable setbacks and dramatic stumbles. Despite the optimism surrounding the current developments, the history of these talks suggests that nothing is guaranteed until the ink is dry.

Despite the long history of delays, the current atmosphere suggests a breakthrough is imminent. The European Union is expected to formalize the agreement shortly. The primary obstacle remaining was the stance of Italy, but recent diplomatic movements indicate that this barrier has been removed. The convergence of political will and economic incentives has brought the two sides closer than ever before.

The focal point of the recent diplomatic shift has been the Italian government's change of heart. During the final European summit held before the Christmas holidays, Italy was the primary force behind the decision to delay the signing. The original date set for the signature was December 20, but Italian objections forced a postponement. This move highlighted the internal divisions within the EU regarding the impact of the deal on specific member states.

The reversal of Italy's position is directly linked to new assurances provided by Brussels. Specifically, the European Commission made new promises of support for the agricultural sector. These assurances appear to have been sufficient to convince Rome to drop its opposition. By addressing the concerns of the agricultural lobby, the EU leadership has effectively cleared the final political hurdle standing in the way of the agreement's ratification.

The signing of this agreement represents a major geopolitical and economic milestone. For the European Union, it opens up vast new markets in South America, potentially boosting trade in industrial goods and services. For the Mercosur nations, it provides greater access to the European single market, particularly for agricultural products and raw materials. The deal aims to create a trade zone encompassing over 700 million people.

While the likelihood of the deal moving forward is high, the source material cautions that always can be surprises. Diplomatic negotiations of this magnitude are rarely straightforward, and last-minute complications could theoretically arise. However, the prevailing sentiment is that the technical and political groundwork has been laid for a successful conclusion to this historic negotiation.