EU delays Mercosur signing as 25-year curse drags on

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illuminem summarises for you the essential news of the day. Read the full piece on POLITICO or enjoy below:

🗞️ Driving the news: The EU's trade deal with the Mercosur bloc, which includes Brazil, Argentina, Uruguay, and Paraguay, has been delayed once again
• Italy’s Prime Minister Giorgia Meloni pushed to postpone the decision to mid-January
• This setback reflects ongoing divisions within the EU over the agreement, particularly due to opposition from farming constituencies in Italy, France, and Poland

🔭 The context: After two decades of negotiations, the EU-Mercosur agreement aims to establish one of the world’s largest free-trade areas
• Despite extensive diplomatic efforts, internal opposition, particularly from EU agricultural sectors, has made it difficult to secure final approval

🌍 Why it matters for the planet: This delay highlights the challenges in balancing environmental concerns with trade interests
• The deal includes provisions on sustainable development, yet critics argue it may encourage deforestation and environmental degradation in Brazil

⏭️ What’s next: The EU will aim to finalize the deal by mid-January to avoid further setbacks
• If ratified, it could significantly alter global trade dynamics, particularly for sectors like agriculture and automotive

💬 One quote: "Mercosur plays a central role in our trade agreements," said European Commission President Ursula von der Leyen, emphasizing its importance despite the internal opposition

📈 One stat: The agreement, when fully ratified, is expected to unlock billions in trade between the EU and Latin America, though its passage remains uncertain due to political resistance

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