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Mercosur Ratifies EU Trade Pact as Paraguay’s Lower House Gives Final Approval

Provisional application now hinges on an exchange of diplomatic notes between Brussels and Paraguay as depositary.

Overview

  • Paraguay’s Chamber of Deputies voted unanimously to approve the agreement, completing the bloc’s legislative ratification after the Senate’s earlier nod.
  • With Argentina, Brazil, Uruguay, and Paraguay all on board, the deal moves to procedural notifications required to activate provisional application.
  • Under the process, the European Union must send a formal note to Paraguay and each Mercosur country must notify the European Commission.
  • Once notifications are exchanged, provisional measures begin on the first day of the second month, with Brazilian Vice President Geraldo Alckmin saying this could happen within months.
  • Full entry into force awaits a Court of Justice of the EU opinion and European Parliament ratification, as the pact signed on January 17 in Asunción would open a roughly 720‑million‑person market and allow over 90% of Mercosur exports into the EU duty‑free.