France, Dec. 19 -- Argentina, Brazil, Paraguay and Uruguay had hoped they would on Saturday finally seal a deal with the EU to create the world's largest free trade zone.

However, the deal, which has been under negotiation for more than 25 years, met with fierce opposition from farmers, notably in France and Italy, and has now been postponed to January.

Several diplomats in Brussels told AFP the EU was working towards a signature on January 12 in Paraguay, which is set to take over leadership of Mercosur from Brazil in 2026.

European Commission chief Ursula von der Leyen said she was confident there would be a "sufficient majority" among the EU's 27 countries to approve the deal next month.

Paraguay's Foreign Minister Ruben Ramirez, f...