What Was Signed and Who Is Included
Mercosur is a South American trade bloc whose full members include Argentina, Brazil, Paraguay, and Uruguay. The agreement signed in Asunción is designed to deepen economic ties between the EU and Mercosur through lower barriers to trade and clearer market-access rules across multiple sectors.
Senior EU officials attended the signing ceremony, including European Commission President Ursula von der Leyen. Mercosur leaders were present, while Brazil was represented by its foreign minister rather than President Luiz Inácio Lula da Silva.
Why the Agreement Matters for Global Trade
The signing comes as the EU pushes for stronger trade partnerships and supply-chain resilience at a time of broader uncertainty in global trade policy. European officials have described the pact as a strategic move to strengthen cooperation with South America and reinforce a rules-based approach to international commerce.
Beyond tariffs, the deal’s significance is also geopolitical, linking two large economic regions through a formal trade framework after years of stalled negotiations and political resistance in multiple countries.
Key Trade Flows Between the EU and Mercosur
Trade between the two blocs is already substantial. In 2024, trade between the EU and Mercosur totaled about €111 billion, reflecting deep existing commercial ties even before tariff reductions under the agreement.
Major export categories cited by coverage
| EU exports to Mercosur (examples) | Mercosur exports to EU (examples) |
|---|---|
| Machinery | Agricultural products |
| Chemicals | Minerals |
| Transport equipment | Paper goods |
Tariff Cuts and Market Access: How Large Is the Deal
Coverage of the agreement describes it as eliminating more than 90% of tariffs between the EU and Mercosur once fully implemented, making it one of the largest free-trade zones by population.
The overall agreement has been widely presented as a broad package benefiting EU industrial exports and improving access for Mercosur agricultural products, though the scale of market opening has also driven political opposition in parts of Europe.
Ratification Process: What Happens Next
Despite being signed, the agreement is not yet in force.
Key next steps include:
- Consent by the European Parliament
- Ratification by national legislatures in Mercosur member countries
Until these approvals are completed, the deal remains a signed framework rather than an active free-trade regime.
Political and Sector Concerns Raised Around the Deal
The agreement has faced long-running resistance, particularly in Europe, where farming groups and some policymakers have expressed concern about increased imports of South American agricultural products. Environmental issues, including concerns linked to deforestation, have also remained central to debate around EU-Mercosur trade integration.
France has repeatedly been highlighted as a key center of opposition, arguing that the competitive impact on European farmers requires stronger safeguards.
FAQ
When was the EU-Mercosur trade deal signed?
The agreement was signed on January 17, 2026, in Paraguay, after more than 25 years of negotiations.
Which countries are part of Mercosur in this deal?
Mercosur members referenced in the signing include Argentina, Brazil, Paraguay, and Uruguay.
Is the EU-Mercosur deal in force now?
No. The agreement still requires approval by the European Parliament and ratification by Mercosur member legislatures before it can take effect.
What is the main purpose of the agreement?
The deal aims to lower tariffs and increase trade between the EU and Mercosur, expanding market access across major industrial and agricultural sectors.
Final Verdict
The EU and Mercosur have formally signed a major trade agreement after decades of negotiations, marking a significant step toward deeper economic integration between Europe and South America. While the pact is positioned as a large tariff-reduction framework with substantial existing trade behind it, its implementation depends on legislative approvals in the EU and Mercosur member states amid ongoing political and sector-level concerns.
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