Europe’s inability to get consensus on the controversial Mercosur trade deal means Brazilian president Luiz Inacio Lula da Silva is now threatening to walk away.

Increased demands on safeguard measures by Europe as part of the deal have frustrated the Brazilian.

The Financial Times reported last night that da Silva told a ministerial meeting on Wednesday: “I have already warned them - if we don’t do it now, Brazil won’t make any more deals while I am president.”

He continued: “We have been waiting for this agreement for 26 years. The agreement is more favourable to them than it is to us. Macron doesn’t want to do it because of his farmers. Italy doesn’t want to do it for I don’t know what reason.”

“We have conceded everything that diplomacy could possibly concede,” he said.

Safeguards

Last night the European Parliament, European Commission and European Council reached an agreement on amending safeguards for farmers that are attached to the trade deal.

The much-watered down safeguards include a clause on an investigation being triggered should the volumes of a product increase by over 8% compared to the three-year average.

Mirror clauses which had been proposed for inclusion by France and Italy have both called on any vote on the deal to be delayed this week. It was intended that the European council of Ministers would vote on the deal today, Thursday.

Blocking minority

This vote has now been pushed to Friday with some sources from within the Commission saying that the vote may not be tabled at all this week on the back of increased resistance from France and Italy.

A qualified blocking minority of four countries and 35% of the EU population is required to block the deal.