Argentina says it intends to leave decisions on the trade deal to incoming President Javier Milei, who has threatened to quit Mercosur.

Argentina has thrown a wrench into the works of EU efforts to reach a Mercosur free-trade agreement next week.

Brazil told the EU that sealing the trade deal next week won’t be possible as the approval of Argentina’s incoming government will be required on outstanding issues such as a policy to curb deforestation, according to two officials close to the negotiations who were granted anonymity to discuss a sensitive topic.