World

Majority of EU countries approve the Mercosur trade deal

Jan 14, 2026 European Union

A qualified majority of EU states have given the green light for the bloc to sign its largest free trade agreement with the South American bloc Mercosur, 25 years after negotiations began

A qualified majority of European Union countries approved the free trade agreement between Mercosur and the EU on the 9^th of January, bringing nearly 25 years of negotiations to a close. France, Poland, Austria, Ireland and Hungary opposed the trade deal, while Belgium abstained.

“This deal marks a new era of trade and cooperation with our Mercosur partners”, said Ursula von der Leyen, President of the EU Commission. “With the Mercosur agreement, we are creating a market of 700 million people - the largest free trade zone in the world. Our message to the world is this: Partnership creates prosperity and openness drives progress”.

Amidst the current macroeconomic instability, the European Commission and countries such as Germany and Spain argue that the agreement will help offset lost business from US import tariffs and reduce reliance on China by securing access to critical minerals.

This deal, which includes the elimination of import tariffs on over 90% of products, is expected to create more business opportunities and drive European investment in strategic sectors. EU exports to Mercosur are expected to grow by almost 50 billion euros by 2040, while Mercosur exports are expected to grow by up to 9 billion euros.

The European footwear confederation CEC was among the 78 business associations from the EU and Mercosur who urged their governments to swiftly conclude a free trade agreement between the two blocs.

France, the leader of the bloc’s opponents, has long argued that the Mercosur agreement will disrupt European agriculture by flooding the market with cheaper products that do not necessarily meet EU environmental regulations. In response to these concerns, the EU emphasises that the deal includes import controls and “robust safeguards to protect their livelihoods”.

The Mercosur bloc comprises Argentina, Brazil, Paraguay and Uruguay. Venezuela joined in 2012 but has been suspended since 2017. Although Bolivia signed an accession protocol in 2012, its membership is still pending ratification by the Mercosur parliaments.

“At this difficult geopolitical moment, marked by instability and conflicts, this is fundamental for the world. It shows that it is possible to build a path of trade with rules, of trade openness, and of strengthening not isolationism, but multilateralism”, commented Paraguayan President Santiago Peña, who currently holds Mercosur’s rotating presidency.

On the 17^th of January, the President of the European Commission, Ursula von der Leyen, will be joined by the President of the European Council, António Costa, for the signing ceremony in Paraguay.

Image Credits: kbc.com

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