Overview
- Leaders signed the association and trade pact in Asunción after nearly 26 years of talks, with Argentina’s Javier Milei and EU Commission President Ursula von der Leyen attending.
- The accord links markets covering roughly 700 million people and grants Mercosur preferential access to about 450 million EU consumers, with the EU set to eliminate tariffs on around 92% of Mercosur exports.
- Key terms include product quotas such as roughly 99,000 tonnes for beef, long phase‑ins for sectors like vehicles (15 to 30 years), and carve‑outs for Mercosur’s most sensitive imports.
- Bilateral safeguard tools allow temporary withdrawal of preferences if imports cause serious harm, alongside sanitary, environmental and traceability commitments tied to EU standards.
- Entry into force hinges on ratification, which analysts say could push implementation to late 2027; Argentina plans to submit the pact to Congress from February 2 as business groups at home cheer the deal and European farm organizations mobilize to resist it.