EU Council authorises signature of EU–Mercosur Partnership Agreement

The EU Council authorised signature of the EU-Mercosur Partnership Agreement on 9 January 2026.

• Main announcement/action: The Council authorised signature of the EU-Mercosur Partnership Agreement (finalised at the Mercosur Summit in Montevideo on 6 December 2024), comprising 20 main chapters (23 including provisions) and annexes; the formal signing ceremony is scheduled for 17 January 2026 in Paraguay with European Commission President Ursula von der Leyen and European Council President António Costa attending. The agreement links blocs of ~700 million people with a combined GDP of approx. USD 22 trillion, establishes an Interim Trade Agreement (ITA) that can take effect upon European Parliament consent, and sets phased implementation over 15 years including tariff elimination (Mercosur eliminates tariffs on 91% of EU exports; EU reciprocates on 92% of Mercosur exports).

• Background and implementation details: The Agreement is presented as a diversification away from China and response to US trade policy uncertainty; it includes provisions on digital trade, IP alignment, telecoms, cybersecurity, and access to critical minerals (lithium, cobalt). Post-signature, the text requires European Parliament consent (majority of all MEPs) and ratification by all EU member states and Mercosur parties (ratification process likely to extend into 2027); opposition from parliamentary blocs and member states (notably France, Poland, Ireland) centers on environmental and agricultural concerns, with a Parliament vote expected in the coming months (potentially Feb–Mar 2026).