Overview
- EU Commission President Ursula von der Leyen and European Council President António Costa signed the agreement in Asunción alongside Mercosur representatives from Argentina, Brazil, Paraguay and Uruguay.
- The accord would phase out over 90 percent of tariffs and includes quotas and safeguards for sensitive farm goods, such as a 99,000‑ton beef quota at a 7.5 percent tariff, with all food imports required to meet EU standards.
- The European Commission projects up to a 39 percent increase in EU exports to Mercosur and about €4 billion in annual tariff savings, though studies foresee only modest overall GDP gains.
- The package is split into a trade agreement under EU competence and a broader political partnership that will require ratification by national parliaments, extending the timeline.
- The pact is not yet in force: the European Parliament must approve it, MEPs plan a Wednesday vote on requesting an ECJ opinion that could delay ratification for months or even years, and the Commission says it will seek Parliament’s backing before any provisional application.