EU Backs Mercosur Trade Deal, Clearing Path to Jan. 17 Signing

Overview

• EU governments approved the pact by qualified majority, with 21 in favor, five against (France, Poland, Austria, Ireland, Hungary) and Belgium abstaining.
• A formal signing in Asunción on January 17 has been signaled by Argentine officials, enabling Ursula von der Leyen to sign for the EU once confirmed.
• The agreement phases out most tariffs over years, sets quotas for sensitive farm goods, embeds safeguards for threatened sectors, and includes sustainability provisions tied to deforestation and Paris Agreement commitments.
• Selected tariff reductions could be applied provisionally during ratification, but full entry into force depends on approvals in Brussels and in Brazil, Argentina, Paraguay and Uruguay.
• The two blocs cover roughly 720 million people and about $22 trillion in GDP, with an Ipea study estimating a 0.46% boost to Brazil’s GDP by 2040.