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EU Clears Mercosur Trade Pact for Jan. 17 Signing in Paraguay

European Parliament consent plus domestic ratifications are still required before any provisions apply.

Overview

  • EU governments approved the accord by qualified majority, with a 21–5 vote and one abstention, after Italy reversed its previous opposition.
  • The formal signing is scheduled for January 17 in Asunción, enabling European Commission President Ursula von der Leyen to sign alongside Mercosur representatives.
  • The pact would scrap EU tariffs on 92% of Mercosur exports and grant preferential access to another 7.5%, while setting quotas for sensitive products such as beef, poultry, maize and ethanol.
  • Political resistance persists in Europe, including about 150 MEPs signaling potential legal challenges and continued objections from France and several other governments.
  • If legislative approvals advance, initial application could begin later in 2026, ultimately covering roughly 700–722 million people with a combined GDP near $22 trillion.