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Brazilian lawmakers have officially approved the long-awaited free trade agreement between the South American trade bloc Mercosur and the European Union, marking a major milestone after more than 20 years of negotiations. The agreement moved forward after Brazil’s Senate voted in favor of the deal on Wednesday, completing the country’s legislative approval process.
The Mercosur–European Union trade agreement aims to strengthen economic ties between the two regions by reducing tariffs, expanding market access, and increasing trade flows. Mercosur is composed of Argentina, Brazil, Paraguay, and Uruguay, and approval from each member country’s legislature is required before the trade pact can fully take effect.
Brazil’s lower house of Congress had already approved the agreement last week, clearing the path for the Senate vote that finalized the country’s position. Brazil, which has the largest economy in South America, plays a crucial role in the implementation of the trade deal, making the Senate’s approval a significant step toward activating the agreement.
Other Mercosur member states have also taken action to ratify the pact. Legislators in Argentina and Uruguay have already approved the agreement, demonstrating strong regional support for closer economic cooperation with the European Union. However, Paraguay is still in the process of completing its ratification procedures. The agreement has been approved by Paraguay’s Senate, but it still requires a vote in the country’s lower house of Congress before the process is finalized.
The Mercosur–EU trade agreement is widely seen as one of the largest trade deals in the world, potentially creating new opportunities for exports, investment, and economic growth across both regions. By lowering trade barriers and improving market access, the deal is expected to boost agricultural exports from South America while providing European companies with broader access to Mercosur markets.
Once all member states complete their legislative approvals, the landmark trade agreement will move closer to implementation, reshaping trade relations between Europe and South America and strengthening economic cooperation between the two major markets.
