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EU Backs Mercosur Trade Pact, Clearing Way for Jan. 17 Signing in Asunción

The agreement still awaits European Parliament approval before any provisions take effect.

Overview

  • EU governments approved the deal by qualified majority, with 21 in favor, five against (France, Austria, Ireland, Poland and Hungary) and one abstention (Belgium).
  • Italy’s late shift from opposition to support enabled the Council’s green light after years of stalled talks.
  • Argentina says the signing will take place on Jan. 17 in Paraguay, with European Commission President Ursula von der Leyen expected to attend.
  • According to Argentine officials, the EU would scrap tariffs on 92% of Mercosur exports and grant preferential access to another 7.5%, covering roughly 99% of agricultural shipments.
  • The pact includes phased openings and quotas for sensitive goods such as beef, poultry, pork, maize, dairy and ethanol, while facing pushback from European farm sectors and a bloc of about 150 MEPs signaling legal challenges; Mercosur legislatures must also ratify.