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Additional farm market safeguards that would kick in if there is a surge in imports from Brazil, Argentina, Paraguay and Uruguay also won the approval of EU ambassadors, the diplomats said, on condition of anonymity.
The EU-Mercosur deal is set to create the world’s largest free trade area, covering some 700 million people. From Brussels’ perspective, the agreement is a major geopolitical win in light of China’s rising share in trade and influence in Latin America.
As U.S. President Donald Trump doubles down on tariffing the world, the treaty also comes at a time when both Europe and countries including Brazil are looking for more predictability. European sectors that stand to win from a reduction of tariffs include automotive, aviation, machine building and agricultural exports like wine and cheese.
European Commission President Ursula von der Leyen is set to travel to Paraguay next week to sign the agreement.
Commission spokesperson Olof Gill did not confirm von der Leyen’s travel plans in a press briefing Friday. “Right now, we are focused on the procedures happening at the Council [of the EU]. We will deal with next steps once those are complete,” he said.
After the deal is signed by von der Leyen and her Mercosur counterparts, the text would be voted on by the European Parliament. Some sections of the deal that go beyond trade policy will also need to be voted on in the EU’s national parliaments.
The EU-Mercosur deal has been in the works for 25 years and has gone through tortured negotiations. In 2025, the EU tweaked the agreement to carve out billions of euros in support for farmers who fear imports from the South American market.
This story has been updated.