Paraguay Clears Mercosur–EU Trade Pact, Paving Way For Mega Free Trade Zone
Paraguay has become the final South American nation to ratify the landmark Mercosur–European Union Free Trade Agreement, bringing the deal closer to implementation and creating one of the world’s largest free trade zones.
The agreement, negotiated over 25 years, spans a combined market of over 700 million people and nearly 25% of global GDP. Paraguay’s approval follows earlier ratifications by Uruguay, Argentina and Brazil, completing the process among Mercosur’s founding members.
The pact now awaits final sign-off from President Santiago Peña. Meanwhile, Bolivia, the bloc’s newest member, is expected to join the agreement at a later stage.
On the European side, the European Commission plans provisional ratification, allowing the deal to take effect while legal scrutiny continues in the European Court of Justice. A final vote by the European Parliament is expected once legal challenges are resolved.
Supporters have hailed the agreement as a historic step toward deeper economic integration and expanded market access for both regions. However, the deal has faced opposition in parts of Europe, particularly from France and farming groups concerned about its impact on the agricultural sector.
Backed by leaders including Ursula von der Leyen and Luiz Inácio Lula da Silva, the agreement is seen as a major milestone in global trade amid rising geopolitical and economic uncertainties.
