“Our message to the world is this: Partnership creates prosperity and openness drives progress,” European Commission President Ursula von der Leyen said in a statement. She hinted at signing the treaty in Paraguay “soon” but did not reveal whether that would be as early as Monday or Tuesday. She is traveling to Cyprus later next week with the College of Commissioners.
Additional farm market safeguards that would kick in if there is a surge in imports from Brazil, Argentina, Paraguay and Uruguay also won the approval of EU countries. “We have heard the concerns of our farmers and our agricultural sector and we have acted on them. This agreement contains robust safeguards to protect their livelihoods,” von der Leyen said. The German Commission president has been a major champion of the deal, concluding negotiations in person in late 2024.
The EU-Mercosur deal is set to create the world’s largest free trade area, covering some 700 million people. From Brussels’ perspective, the agreement is a major geopolitical win in light of China’s rising share in trade and influence in Latin America.
As U.S. President Donald Trump doubles down on tariffing the world, the treaty also comes at a time when both Europe and countries including Brazil are looking for more predictability. European sectors that stand to win from a reduction of tariffs include automotive, aviation, machine building and agricultural exports like wine and cheese.
After the deal is signed by von der Leyen and her Mercosur counterparts, the text would be voted on by the European Parliament. Some sections of the deal that go beyond trade policy will also need to be voted on in the EU’s national parliaments.
The EU-Mercosur deal has been in the works for 25 years and has gone through tortured negotiations. To get it over the line, the EU carved out billions of euros in extra support for farmers who fear imports from the South American market.
This story has been updated.