Argentina, Brazil, Paraguay, and Uruguay were scheduled to finalize the treaty in Foz do Iguaçu, a city in southern Brazil, on Saturday, during the MERCOSUR Summit.

However, a lack of internal consensus among the European nations led Brussels to postpone the decision until January, generating discontent among the South American governments, which consider the negotiation process, which began almost three decades ago, to be exhausted.

Warnings from MERCOSUR were swift. Both Brazil, which is relinquishing the bloc’s pro tempore presidency, and Paraguay, which will assume it this Saturday, made it clear that further delays could mean the definitive end of talks with the EU.

Brazilian Foreign Minister Mauro Vieira stated that, should the deal not be reached, the bloc will redirect its efforts toward other strategic markets.

Among the alternatives mentioned are Canada, the United Kingdom, Japan, and several Asian countries, in addition to partners seeking to update existing deals, such as India.

The EU, in turn, ruled out voting on the treaty’s approval within the initially planned terms and granted Italy more time to analyze its domestic impact.

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