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EU and Mercosur Sign Trade Pact in Paraguay After 25 Years of Talks

The pact can take effect on a provisional basis before any European Parliament vote.

Overview

  • Commission President Ursula von der Leyen attended the Paraguay ceremony even though the European Parliament has not set a vote.
  • Farmers kept up pressure with a tractor rally near Berlin’s Brandenburg Gate and plan a 20 January protest outside the European Parliament.
  • Producer groups in Europe warn of cheaper imports from countries with different sanitary and environmental standards under the accord.
  • In Uruguay, an industry leader cautioned that stronger competition could force closures in processing sectors without domestic support measures.
  • The agreement links markets of about 718 million people with a combined GDP near $22.4 trillion, promising tariff cuts and expanded access.