Lula Skips EU–Mercosur Signing in Asunción, Deepening Regional Strains

Brazilian President Luiz Inácio Lula da Silva will not attend the planned signing ceremony in Asunción, Paraguay, for the long‑anticipated EU–Mercosur free‑trade agreement, a decision that has heightened diplomatic tensions within the South American trading bloc.

Brazil will be represented at the ceremony by Foreign Minister Mauro Vieira. Presidents from Argentina, Paraguay and Uruguay are expected to attend, while leaders from Panama and Bolivia will join as special guests. Bolivia is actively seeking full membership in Mercosur, the Southern Common Market composed of Argentina, Brazil, Paraguay and Uruguay.

The agreement — the result of more than 25 years of negotiation — would create a market of over 700 million people and represent nearly a quarter of global GDP. It aims to eliminate or reduce tariffs on thousands of products, facilitate investment and expand access to sectors including industry, agriculture and services, giving it significant economic and geopolitical weight.

Brazilian diplomats said Mr. Lula met on Friday in Rio de Janeiro with European Commission President Ursula von der Leyen in a meeting they described as carrying greater political significance than Saturday’s ceremonial signing in Asunción. Brazilian media reported the president sought a prominent photo opportunity with senior European officials, a move some regional partners viewed as sidelining them.

Argentine newspaper La Nación quoted senior Argentine officials criticizing Lula’s decision, saying he had "set up a parallel summit a day earlier" and calling it "a lack of respect toward his partners." Brazilian daily O Globo reported the president wanted to avoid standing next to Argentine President Javier Milei, with whom relations have recently cooled.

Brazil’s government has downplayed the absence, noting the signing was originally conceived at the ministerial level and saying Paraguay elevated it to a presidential ceremony on short notice.

Tensions extend to Europe, where the pact must undergo ratification by the European Parliament — a politically sensitive process facing opposition from agricultural and environmental groups. About 150 Members of the European Parliament have signaled possible legal challenges or initiatives to block or delay approval. To reduce the risk of implementation stalling, the Council of the European Union is considering provisional application of parts of the deal covering political dialogue and institutional cooperation, which do not require immediate parliamentary ratification.

That provisional approach would allow partial implementation of the agreement’s political framework while legislative debates continue over the core trade commitments. Whether that compromise can bridge political and legal hurdles in both South America and Europe will determine how quickly the pact delivers on its promised economic and geopolitical impact.