EU Backs Mercosur Trade Deal, Clearing Path to Jan. 17 Signing

Overview

• EU governments approved the pact by qualified majority, with 21 in favor, France, Poland, Austria, Ireland and Hungary opposed, and Belgium abstaining.
• A formal signing in Asunción on January 17 is planned, with European Commission President Ursula von der Leyen authorized to sign on the EU’s behalf.
• The agreement would link markets of roughly 720 million people and about US$22 trillion in GDP, phasing out tariffs on about 91% of trade over multi‑year timelines.
• Sensitive farm goods face quotas and emergency safeguards, allowing the EU to suspend preferences if import volumes jump or prices fall by more than 5% over three years; examples include a 99,000‑ton beef quota at a 7.5% tariff and a 180,000‑ton poultry quota.
• Full legal effect requires European Parliament assent and approvals by Mercosur legislatures, with limited tariff provisions potentially applied provisionally during ratification.