International Relations

Lula’s Absence at EU-Mercosur Signing Reveals Deeper Struggles Behind Trade Deal

By Economics Desk | January 16, 2026

Brazilian President Lula’s no-show at the historic EU-Mercosur trade deal signing uncovers lingering tensions and asymmetries threatening America’s strategic interests in the Western Hemisphere.

After a quarter-century of drawn-out negotiations, the long-anticipated free trade agreement between the European Union and Mercosur—South America’s major economic bloc—finally reached the precipice of formalization. Yet, amidst celebratory statements and fanfare, Brazilian President Luiz Inácio Lula da Silva notably skipped the signing ceremony in Paraguay, entrusting Foreign Minister Mauro Vieira to represent his nation.Is This a Sign of Unequal Terms in a ‘Historic’ Deal?Lula’s absence raises pressing questions about Mercosur’s standing and Brazil’s growing frustration with an agreement that, despite its fanfare, highlights inherent imbalances. To many observers paying close attention beyond diplomatic platitudes, this is not merely a...

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