Mercosur–EU Trade Deal Set for Jan. 17 Signing as Brazil Targets Second-Half 2026 Launch

Overview

• EU governments approved the pact by qualified majority on Jan. 9, with 21 in favor, five against and one abstention, clearing the way for signature.
• The treaty is due to be signed in Asunción on Jan. 17; Brazil will be represented by Foreign Minister Mauro Vieira as President Lula pursues a separate joint statement with EU leaders in Rio.
• Vice President Geraldo Alckmin says he expects votes in the European Parliament and Brazil’s Congress in the first half of 2026, enabling entry into force in the second half.
• European lawmakers will vote Jan. 21 on a no‑confidence motion linked to the deal that, if approved, could pause ratification pending a court review, and farm unions plan a Jan. 20 protest in Strasbourg.
• The agreement would span roughly 720 million people and about US$22 trillion in market size, lowering tariffs, opening EU public procurement, and imposing stricter due‑diligence and sustainability requirements on companies.