German business associations have expressed strong disappointment over the European Union’s decision to postpone the signing of its long-awaited free trade agreement with the South American Mercosur bloc until January, warning that the delay undermines Europe’s credibility and strategic standing. The Federation of German Industries (BDI) said the renewed postponement sends a negative signal at a time when the EU needs to strengthen its global competitiveness and overcome internal divisions.
Industry groups, including the German auto association VDA and the German Chamber of Commerce and Industry (DIHK), warned that the delay risks weakening the EU’s role as a reliable trade partner after more than two decades of negotiations. They argued that the agreement would help boost exports, counter the impact of U.S. tariffs, and reduce Europe’s dependence on China by improving access to key raw materials. Business leaders stressed that prolonged uncertainty could hurt growth, jobs, and investor confidence across Europe.
Despite opposition from some member states concerned about the impact on European farmers, EU Commission President Ursula von der Leyen said she expects sufficient support to eventually approve the deal. German trade groups cautioned, however, that further delays could prove costly, noting that most EU exports to Mercosur countries currently face tariffs, adding billions of euros in annual costs and weakening Europe’s position in an increasingly competitive global trade environment.
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