Overview
- Leaders formalized the accord in Asunción, with Ursula von der Leyen, European Council President Antonio Costa, Brazil’s Luiz Inácio Lula da Silva, Paraguay’s Santiago Peña, and Argentina’s Javier Milei in attendance.
- The pact pledges to scrap tariffs, cut other trade barriers, and open public procurement, establishing clearer rules to spur investment and trade for companies including tens of thousands of EU SMEs.
- Officials say the deal creates one of the largest free-trade areas, covering roughly 700–720 million people and a substantial share of global GDP.
- A dedicated chapter on trade and sustainable development commits the parties to cooperate on climate goals and environmental protection, with the EU highlighting improved access to strategic raw materials.
- The European Parliament votes Jan 21 on a referral to the Court of Justice and Jan 22 on a motion of censure against the Commission, as farmer groups plan tractor protests in Strasbourg on Jan 20; a court referral could delay implementation by 18–24 months, while rejection would keep a potential ratification timeline on track for spring.