SAO PAULO – On Saturday, Brazil’s President Luiz Inácio Lula da Silva expressed optimism that the long-anticipated free-trade agreement between the South American bloc Mercosur and the European Union might be finalized in January. This comes despite protests from European farmers and opposition from France and Italy, which pose significant obstacles to an agreement that has been in negotiation for over 26 years.

The European Union’s top officials had initially aimed to sign the EU-Mercosur agreement during their visit to Brazil this weekend. However, European Commission President Ursula von der Leyen announced on Friday, following a challenging EU summit, that the signing would be postponed by “a few extra weeks” to resolve outstanding issues with some member countries.

During a summit in Foz do Iguaçu, a Brazilian city near the borders of Argentina and Paraguay, Lula addressed fellow South American leaders. He noted that the meeting was convened under the expectation that European negotiators were ready to finalize the agreement, a step that ultimately did not materialize. He attributed the delay to Italian Premier Giorgia Meloni’s request for additional time.

For von der Leyen to move forward with the deal, she requires the support of at least two-thirds of the EU member states. Italy’s opposition, combined with France’s stance, could provide enough votes to block her signature.

“Completing a negotiation that has lingered for 26 years demands political will and courage from leaders,” Lula remarked, having spoken with Meloni by phone on Friday and received a letter from EU leadership targeting a January agreement. “In the meantime, Mercosur will continue to explore opportunities with other partners.”

“The world is eager to make deals with Mercosur,” the Brazilian president added. “Many countries want that. And we certainly we will be able to finish the deals that were not finished during my presidency (of the bloc, due in the end of December).”

If signed, 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.

France has led opposition to the deal between the EU and the five active Mercosur countries — Brazil, Argentina, Uruguay, Paraguay and Bolivia. French President Emmanuel Macron said on Thursday at an EU summit he wouldn’t commit to supporting the deal next month either.

Macron added he has been in discussions with Italian, Polish, Belgian, Austrian and Irish colleagues among others about delaying it to address farmers’ concerns.

Lula argued Macron alone can’t block an agreement.

“Let’s hope that things happen for the good of our Mercosur, multilateralism and the development of our countries,” the Brazilian president said.