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Lula Hosts EU Leaders in Rio, Skips Mercosur–EU Signing in Paraguay

The pact still requires approval by lawmakers in both regions before it can take effect.

Chatenay-Malabry (France), 15/01/2026.- A cow model painted in the colours of the French national flag with the words 'Fair trade milk' is displayed during a protest by farmers from agriculture and dairy industry unions against the EU-Mercosur deal, outside Lidl's headquarters in Chatenay-Malabry suburb, southwest of Paris, 15 January 2026. France's second-largest agricultural union, Coordination Rurale (CR), along with the APLI and the European Milk Board (EMB), has called for demonstrations to defend the farming profession, and to protest the influx of non-compliant imports replacing French products following the EU's approval of the Mercosur trade deal on 09 January 2026. Despite fierce opposition from the farming sector, the deal, which creates the world's largest free trade zone, is scheduled for official signing on 17 January 2026, in Asuncion, Paraguay. (Protestas, Francia) EFE/EPA/MOHAMMED BADRA
Javier Milei, en la Sesión Plenaria de la Cúpula de Jefes de Estado de los Estados Partes de Mercosur y de los Estados Asociados en Foz de Iguazú (Brasil). Foto: EFE.
El acuerdo del Mercosur con la Unión Europea
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Overview

  • Ursula von der Leyen and António Costa will meet Brazil’s president in Rio on January 16, a day before the Asunción ceremony to formalize the EU–Mercosur deal.
  • The agreement will be signed by foreign ministers on January 17, with presidents Javier Milei, Santiago Peña and Yamandú Orsi expected to attend while Lula stays in Brazil.
  • Argentina will be represented at the signing by Foreign Minister Pablo Quirno, reflecting the event’s ministerial format despite presidential attendance.
  • The European Union’s Council approved the accord on January 9, and full implementation hinges on ratification by the European Parliament and national legislatures in Mercosur countries.
  • The deal spans a market of roughly 700–780 million people and more than €110 billion in current annual trade, as European farm groups and environmental organizations voice concerns over standards and deforestation.