EU to Sign Mercosur Trade Pact in Paraguay Before Parliament Vote

Overview

• European Commission President Ursula von der Leyen is set to attend the January 17 signing in Paraguay after more than 25 years of talks.
• The Commission says the agreement’s text permits temporary entry into force, and the European Parliament has not yet scheduled a ratification vote.
• Farmer opposition in Europe continues, with unions planning a January 20 demonstration at the European Parliament over competitiveness and standards concerns.
• Uruguay’s industry chamber warns the pact could intensify competition for domestic processing sectors and urges protective measures, innovation, and cost reductions.
• The pact would establish a free-trade area covering about 718 million people with a combined GDP of roughly $22.4 trillion.