Overview
- Leaders gather at the Gran Teatro José Asunción Flores for the ceremony, with Ursula von der Leyen and António Costa representing the EU and presidents Santiago Peña, Javier Milei and Yamandú Orsi attending; Brazil’s Lula skips the event, delegating to his foreign minister after meeting EU leaders in Rio.
- The agreement phases out roughly 90–92% of tariffs over up to 15 years, pairing cuts with quotas and safeguards on sensitive farm goods such as beef, poultry, sugar and ethanol.
- Brussels projects EU firms will save about €4 billion annually in duties and sees potential export gains of up to 39%, while Mercosur exporters gain wider access to a high‑income market.
- The pact advances to a contentious ratification stage in the European Parliament and Mercosur legislatures, with limited scope for provisional application of EU‑competence elements under scrutiny.
- European farmers have staged protests in several countries and environmental groups warn of deforestation risks, prompting reinforced safeguard triggers that allow investigations if sensitive imports rise and prices fall by around 5% over three years.