Overview
- EU Commission President Ursula von der Leyen signed a partnership pact and an interim trade agreement with Argentina, Brazil, Paraguay and Uruguay on January 17 in Asunción.
- The interim trade agreement requires European Parliament consent in the first half of 2026, while the broader partnership will later need ratification by national parliaments.
- MEPs will hold a test vote on referring the deal to the European Court of Justice, a step that reporting suggests could delay implementation by more than a year.
- Right-wing groups filed a no-confidence motion against the Commission over the deal, but it drew little backing in a late-night debate as Trade Commissioner Maros Sefcovic defended the pact.
- Industry groups highlight potential EU export gains of up to roughly 39 percent, about €4 billion in annual tariff savings and improved access to lithium and copper, while French farmers protest and environmental NGOs say climate and forest protections are too weak.