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EU Backs Mercosur Trade Deal as Signing Set for Jan. 17 in Asunción

The pact still needs European Parliament assent before any provisions can take effect.

Overview

  • EU countries approved the agreement by 21–5 with one abstention, after Italy shifted to support and broke a prior blocking minority.
  • The Council’s authorization enables European Commission president Ursula von der Leyen to sign, and Argentina confirmed a Jan. 17 ceremony in Paraguay.
  • Lawmakers in Strasbourg must now vote on the commercial pillar, with around 150 MEPs signaling possible legal challenges, and national ratifications will also be required.
  • The text would remove EU tariffs on 92% of Mercosur exports and grant preferential access for another 7.5%, with quotas for sensitive goods such as beef, poultry, maize and ethanol that the bloc says would benefit most agricultural sales.
  • Once implemented, the accord would link markets of roughly 700–722 million people, and limited application could begin after parliamentary approval and early ratifications, potentially later in 2026.