Overview
- The Council of the European Union approved the association agreement by 21–5 with one abstention, enabling a signing ceremony on January 17 in Asunción.
- Italy’s switch to support secured the qualified‑majority threshold despite opposition from France, Poland, Ireland, Austria and Hungary.
- Core market‑access terms include EU tariff removal on about 92% of Mercosur exports plus preferences on another ~7.5%, with sensitive farm goods managed by quotas such as 100,000 tonnes of beef.
- An Interim Trade Agreement mechanism is expected to accelerate application of the commercial pillar, while full implementation still requires European Parliament consent and ratification in Mercosur countries.
- Around 150 Members of the European Parliament have signaled potential legal challenges, and Argentina has committed to phase out export duties on EU‑bound goods from year three, with soy duties capped and falling to 14% by year ten.