Brazil completes its legislative process and ratifies the EU–Mercosur deal

The accord —negotiated for more than 25 years— was signed in Asunción on January 17, 2026, and sets out a gradual reduction of tariffs on most two-way trade, with sector-specific phase-in schedules. The European Union has published the agreement’s text and describes the package as a broader “Partnership Agreement” alongside an “Interim Trade Agreement.”

Brazil’s ratification strengthens Mercosur’s internal momentum after Uruguay and Argentina recently moved the deal through their own parliaments. In Montevideo, lawmakers backed ratification by an overwhelming margin; in Buenos Aires, the Senate approved it 69–3 after the Chamber of Deputies had already endorsed the treaty, according to Associated Press coverage.      Even with Mercosur’s national legislatures advancing the pact, the timeline for entry into force hinges on the European process. Within the EU, the file remains intertwined with legal and institutional steps and with domestic political pressures, particularly around agricultural sensitivities in several member states. In that context, European officials have floated provisional application of parts of the deal while ratification procedures continue.      In Brazil, supporters framed the agreement as a vehicle to expand exports, attract investment and lock in predictable trade rules with one of the country’s key economic partners outside Asia. Critics have pointed to adjustment risks for sensitive sectors and have argued for safeguards if liberalization accelerates.

Paraguay —the remaining founding member yet to complete its legislative track— is expected to take up the agreement in the coming weeks, according to recent reporting on the ratification calendar.