Overview
- The agreement was signed in Asuncion on January 17, forming one of the world’s largest free‑trade areas covering more than 700 million people and roughly 30% of global GDP.
- Tariff reductions are set to boost EU exports of cars, machinery, wines and cheeses, while quotas will ease entry for South American beef, poultry, sugar, rice, honey and soy.
- Farm groups across Europe warn that lower‑priced imports, especially high‑value beef cuts, could depress local prices despite safeguard mechanisms and so‑called mirror clauses.
- Environmental organizations warn of increased trade‑driven deforestation in the Amazon, Gran Chaco and Cerrado, citing studies that project additional forest loss.
- The pact now proceeds to the European Parliament for a ratification vote that could be tight, as national pushback continues and farmer demonstrations are planned in Strasbourg on January 20.