EU and Mercosur Sign Trade Deal, Sending Pact to Ratification

Overview

• Leaders from both blocs signed the agreement on January 17 in Asunción, with Brazil represented by Foreign Minister Mauro Vieira.
• The pact phases out tariffs on more than 90% of bilateral trade, linking markets of about 720 million people and roughly US$22 trillion in GDP.
• The text includes binding environmental obligations, strict sanitary rules, tariff‑rate quotas, and temporary safeguards for sensitive farm products.
• Implementation now hinges on approval by the European Parliament and by Mercosur national congresses, with the commercial chapter eligible for provisional application.
• European farm groups plan new protests, including a January 20 action in Strasbourg, and EU lawmakers are expected to vote January 21 on whether to seek a Court of Justice opinion that could delay the process.