European Union member states have cleared the way for the bloc to sign its long-delayed trade agreement with Mercosur, the South American customs union comprising Argentina, Brazil, Paraguay and Uruguay, after a broad majority backed the deal in a Council vote on 9 January.
The decision authorises the signature of two legally distinct texts: the EU–Mercosur Partnership Agreement, which bundles political dialogue, cooperation and a trade pillar, and a stand-alone Interim Trade Agreement intended to deliver the trade provisions sooner. The Council said large parts of the political and cooperation chapters would be applied provisionally, while the interim trade text falls under EU exclusive competence and therefore does not require national ratification.
Under the Council decision, the agreements still require the consent of the European Parliament before they can be concluded by the EU. For the full Partnership Agreement to enter into force, ratification by all EU member states would also be required, reflecting its mixed nature.
Diplomats cited by Reuters said 21 member states supported the agreement. France, Poland, Austria, Hungary and Ireland voted against, while Belgium abstained. Approval was reached under qualified majority rules, which require at least 15 countries representing 65 per cent of the EU population.
The vote follows months of internal bargaining within the EU, with several capitals seeking additional guarantees for agriculture and stronger enforcement tools. The Council said its decision includes temporary arrangements allowing rapid action to address market disturbance linked to imports of sensitive agricultural products, pending the adoption of a dedicated bilateral safeguards regulation. Under the interim trade agreement, the Commission would be empowered to deploy bilateral safeguards for agricultural products, alongside enhanced monitoring of products subject to tariff-rate quotas.
Reuters reported that the Commission also set out a package of measures to win over sceptical governments, including strengthened import controls, the creation of a crisis fund, accelerated support for farmers and a pledge to reduce import duties on fertilisers.
The Council described the agreement as establishing a framework for political dialogue, cooperation and trade relations with Mercosur partners. It said the partnership text covers cooperation areas including sustainable development, environment and climate action, digital transformation, human rights, mobility, counter-terrorism and crisis management, alongside structured platforms for sectoral dialogue and coordination in multilateral forums.
In trade terms, the deal is framed by the Commission and several EU member states as a major market-opening exercise. Reuters described it as the EU’s biggest agreement in terms of tariff reduction, removing €4 billion of duties on EU exports. It noted that Mercosur countries maintain high tariffs in sectors such as car parts, dairy and wines.
The Council said the agreement would create a free trade zone covering a market of more than 700 million consumers. It put EU–Mercosur trade in goods at more than €111 billion in 2024, and services trade at more than €42 billion in 2023, the most recent year with available data.
The approval came amid visible domestic opposition in parts of the EU. In January, farmers staged protests in several countries, including road blockades in France and Belgium and a march in Poland. Their objections focus on the potential impact on EU producers from increased competition, particularly in beef, poultry and sugar.
France, the EU’s largest agricultural producer, has been at the centre of the opposition and has signalled it will continue to press its case during the European Parliament stage.
Supporters of the agreement within the EU have emphasised broader trade strategy and supply considerations. Germany and Spain argued the deal would help offset business lost from US import tariffs and reduce reliance on China by securing access to critical minerals. Brazilian President Luiz Inácio Lula da Silva welcomed the EU clearance as a “historic day for multilateralism” in a social media post.
The member-state decision clears the way for a formal signature with Mercosur partners. Argentina’s Foreign Ministry said a signing ceremony would take place on 17 January in Asunción, Paraguay, with Commission President Ursula von der Leyen expected to sign on the EU’s behalf.
Attention now turns to the European Parliament, where the agreement will need a majority to secure consent. Bernd Lange, chair of the Parliament’s trade committee, said he was confident it would be approved, with a final vote expected in April or May.
If the Parliament consents and the Council concludes the texts, the interim trade agreement could apply ahead of full ratification of the broader partnership. The Council said the interim deal would remain in effect until it is superseded by the entry into force of the full Partnership Agreement, which would require completion of ratification in both the EU and Mercosur.
