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EU Sets May 1 Start for Mercosur Trade Deal Under Provisional Terms

A formal notice from Paraguay unlocked the legal step, with the European Court of Justice yet to rule.

Panama's President Jose Raul Mulino, Bolivia's President Rodrigo Paz, European Council President Antonio Costa, European Commission President Ursula von der Leyen, Argentina's President Javier Milei, Uruguay's President Yamandu Orsi and Brazil's Foreign Minister Mauro Vieira listen to Paraguay's President Santiago Pena's speech, during the signing ceremony of a free trade agreement between the European Union and the South American bloc Mercosur, ending more than 25 years of negotiations, in Asuncion, Paraguay, January 17, 2026. REUTERS/Cesar Olmedo
President of the European Commission, Ursula von der Leyen, left, and Governor-General of Australia, Sam Mostyn, pose for a photo at Admiralty House in Sydney, Monday, March 23, 2026. (AP Photo/Rick Rycroft)
EU Commissioner for Trade and Economic Security Maros Sefcovic visits Admiralty House in Sydney, Monday, March 23, 2026. (AP Photo/Rick Rycroft)

Overview

  • The European Commission confirmed the May 1 launch after receiving a note verbale from Paraguay signaling approval.
  • Trade provisions will apply on a temporary basis and could be halted if the European Court of Justice finds the move unlawful or if Parliament ultimately withholds consent.
  • Uruguay, Brazil, Paraguay and Argentina have ratified the pact, while Bolivia did not take part in negotiations but could join later.
  • The agreement links more than 700 million people and roughly a quarter of global GDP, removing tariffs on over 90% of trade between the blocs.
  • Opposition from farmers, environmental groups and leaders including France’s Emmanuel Macron persists, even as EU officials frame the deal as key to resilience and growth.