EU delays massive free-trade deal with South American bloc Mercosur

"European Commission President Ursula von der Leyen said Friday after a tense EU summit that the signature will be delayed 'a few extra weeks to address some issues with member states. Experts say the delay could dent the EU's negotiating credibility globally as it seeks to forge new trade ties amid commercial tensions with the U.S. and China. Once ratified, the trade deal would cover a market of 780 million people and a quarter of the globe's gross domestic product, and progressively remove duties on almost all goods traded between the two blocs."

"French President Emmanuel Macron welcomed the postponement, as did French farmers unions, who fear the deal would undercut their livelihoods. France had led opposition to the deal between the EU and the five active Mercosur countries Brazil, Argentina, Uruguay, Paraguay and Bolivia. Italy raised new reservations Wednesday. Thursday's agreement for a delay was reached between von der Leyen and European Council President Antonio Costa on the sidelines of the EU summit with Italian Premier Giorgia Meloni, on the condition that Italy would vote in favor of the agreement in January, an EU official said."

"The decision came hours after farmers in tractors blocked roads and set off fireworks in Brussels to protest the trade deal, prompting police to respond with tear gas and water cannons. The farmers brought potatoes and eggs to throw and waged a furious back-and-forth with police. Protesters burned tires and a faux wooden coffin bearing the word Agri"

The EU postponed signing the long-negotiated EU-Mercosur free-trade deal for a few extra weeks to address member-state concerns. The deal, after 26 years of talks, would open a market of 780 million people and cover about a quarter of global GDP while progressively removing duties on most goods. France led opposition, and French farmers unions fear livelihood losses; Italy raised last-minute reservations. A delay agreement tied Italy's January vote to concessions. Protests erupted in Brussels with tractors, fireworks, tear gas, water cannons, thrown produce, burned tires and a faux coffin labeled Agri.

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