Overview
- EU trade chief Maroš Šefčovič and Mercosur foreign ministers signed the agreement at the Gran Teatro José Asunción Flores, with Ursula von der Leyen and António Costa attending alongside presidents Javier Milei, Santiago Peña and Yamandú Orsi, while Brazil’s Lula was represented by his foreign minister Mauro Vieira.
- The pact spans a market of roughly 720–780 million people, phases out more than 90% of tariffs, and aligns rules on procurement, intellectual property, sanitary and technical standards, and environmental and labour commitments.
- The deal will take effect only after approval by the European Parliament and each Mercosur legislature, and officials are discussing whether to provisionally apply commercial provisions before full ratification.
- Political resistance remains strong in parts of Europe, where farmers have protested; the EU approval advanced with 21 countries in favor, five opposed (France, Poland, Austria, Ireland, Hungary) and Belgium abstaining, and the text includes quotas and safeguard mechanisms for sensitive farm goods.
- The European Commission estimates up to €4 billion a year in tariff savings for EU companies, and Argentina’s government says it will send the agreement to Congress for ratification in the coming days.