BRUSSELS — The European Union has taken a significant step towards finalizing its long-anticipated trade agreement with the South American Mercosur bloc, as a qualified majority of EU member states gave their approval on Friday, according to four EU diplomats. This decision marks a pivotal moment after 25 years of negotiations.
Mixed reactions from member states
While several countries expressed their dissent, including France, Poland, Austria, Ireland, and Hungary, Belgium chose to abstain from the vote. Italy, having previously called for a postponement, sided with the majority in favor of the deal. EU capitals have until 5 p.m. on Friday to lodge any objections and formally validate the decision. This written procedure serves to provide political support for the informal approval previously granted by ambassadors based in Brussels.
Implications of the deal
In addition to the trade agreement, EU ambassadors have also endorsed additional agricultural market safeguards designed to activate if there is a sudden influx of imports from Brazil, Argentina, Paraguay, and Uruguay. The EU-Mercosur deal is poised to establish the largest free trade zone globally, encompassing approximately 700 million individuals. From the EU’s standpoint, this agreement represents a significant geopolitical achievement, particularly in light of China’s increasing influence and trade presence in Latin America.
As global trade landscapes evolve, including U.S. President Donald Trump’s focus on imposing tariffs, both Europe and nations like Brazil are striving for greater stability. Key European sectors expected to benefit from reduced tariffs include automotive, aviation, machinery, and agricultural exports such as wine and cheese.
European Commission President Ursula von der Leyen is scheduled to visit Paraguay next week to finalize the agreement. However, Commission spokesperson Olof Gill did not confirm her travel plans during a press briefing on Friday, stating, “Right now, we are focused on the procedures happening at the Council [of the EU]. We will deal with next steps once those are complete.”
Once the deal is signed by von der Leyen and her Mercosur counterparts, it will proceed to a vote in the European Parliament. Additionally, certain elements of the agreement that extend beyond trade policy will require approval from individual national parliaments within the EU.
The EU-Mercosur agreement has taken shape over a quarter-century, characterized by complex negotiations. In 2025, the EU made adjustments to the deal, allocating billions of euros in support for farmers who are apprehensive about potential competition from South American imports.
This story has been updated.