The EU member states’ ambassadors formally approved the trade agreement with Mercosur through a written procedure that concluded on Friday afternoon. European Commission President Ursula von der Leyen has received the mandate to finalize the agreement in Paraguay.
The conclusion of the written procedure was announced on Friday before 6 p.m. by the Cypriot presidency, which assumed the EU Council presidency from Denmark on January 1.
“Today’s decisions mark a historic advancement in reinforcing the EU’s strategic partnership with Mercosur, after more than 25 years,” stated Cypriot Minister of Energy, Trade and Industry Michael Damianos.
He emphasized the importance of enhancing political cooperation, deepening economic ties, and maintaining a collective commitment to sustainable development amidst increasing global uncertainty.
Damianos noted that the agreement with Mercosur will create new opportunities for businesses while ensuring robust protections for vulnerable sectors within the EU.
As reported by an EU source, Poland, France, Ireland, Hungary, and Austria opposed the agreement, while Belgium abstained. A strengthened safeguard clause for the agreement was also adopted.
The approval from the capitals allows Commission President von der Leyen to travel to Paraguay for the signing of the agreement, as Paraguay currently holds the presidency of the Mercosur bloc.
This trade agreement with Mercosur countries—Argentina, Brazil, Paraguay, and Uruguay—will grant tariff preferences for certain agricultural products, including sensitive items such as beef, poultry, dairy, sugar, and ethanol. In exchange, these countries will open their markets to EU industrial goods like cars, machinery, and medicines.
On Friday, a strengthened safeguard clause for the Mercosur agreement was also adopted. This mechanism, typically included in trade agreements, is designed to offer enhanced guarantees.
The mechanism may result in the suspension of tariff preferences for Mercosur producers if there is a price decline for sensitive products in the EU or if an excessive quantity of these products floods the market.
Ultimately, the mechanism will be triggered when prices for sensitive products in the Union, such as beef, poultry, or dairy, decrease by 5 percent instead of 8 percent. The original proposal from the Commission suggested activation after a 10 percent threshold was surpassed. (09.01.2026)
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