Paraguay becomes final South American country to approve Mercosur-European
Union trade deal
[March 18, 2026] By
NAYARA BATSCHKE
SANTIAGO, Chile (AP) — Paraguay on Tuesday became the latest and final
South American country to ratify the landmark free trade agreement
between Mercosur and the European Union, which will establish one of the
world’s largest free trade zones.
The European Commission, the EU’s executive branch, has said it will
provisionally ratify the deal, meaning the agreement could take effect
even as a legal challenge by European lawmakers winds its way through
the European Court of Justice.
The deal has been negotiated for a quarter century among countries that
are now home to more than 700 million people and account for 25% of
global gross domestic product. It was unanimously approved by the 58
Paraguayan deputies present in the session, nearly two weeks after the
Senate gave its green light. After the endorsement, it now awaits
President Santiago Peña's signature.
With today’s vote, Paraguay became the fourth and final of the Mercosur
founding members to ratify the agreement, following Uruguay, Argentina
and, most recently, Brazil.
Bolivia, the newest Mercosur member, didn’t participate in the
negotiations, but will be able to join the deal in the coming years.
“This is a historic agreement for Paraguay, for the region, and for the
world. We are creating what is possibly the largest market in the
world,” said Deputy Rodrigo Gamarra, from the ruling Colorado Party and
current president of the Mercosur Parliament (Parlasur).
During the session, which lasted more than nine hours, deputies praised
the opportunities that the agreement will open up for both blocs.
“This provisional agreement is the bridge to full integration,” said
Deputy Juanma Añazco, also from the Colorado Party.
“It was years and years of negotiations and reluctance ... achieving
this is truly historic,” added Deputy Alejandro Aguilera, also from the
ruling coalition.
Sectors of the opposition also expressed support for the agreement, with
independent Deputy Raúl Benítez noting that “where there is isolation,
we respond with multilateralism.”
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Chamber of Deputies President Raul Latorre votes in favor of a
European Union-Mercosur trade agreement in Asuncion, Paraguay,
Tuesday, March 17, 2026. (AP Photo/Jorge Saenz)
 The vote in Paraguay concludes the
process of accession and validation of the agreement on the South
American side.
Uruguay was the first South American nation to ratify the agreement
in late February. The same day, Argentina also completed the
ratification process with a large majority in both the Senate and
the Chamber of Deputies.
Brazil, Mercosur’s largest economy, didn’t wait to follow its
neighbors. The Senate unanimously ratified the alliance in early
March after receiving approval from the lower house.
Legislative bodies across the EU’s 27 nations don't need to
individually ratify the major trade deal, but the European
Parliament will again vote on ratifying it if and when the court
case concludes that the agreement doesn't break EU treaties.
France, left-wing groups and farmers’ unions led opposition to the
free trade agreement, arguing that it would destabilize the European
agricultural sector.
The treaty comes at a time when political fragmentation and economic
shifts challenge the international landscape. Several European
nations are facing security challenges and are strained by ongoing
tensions with the United States.
Alongside Brazilian President Luiz Inácio Lula da Silva, European
Commission President Ursula von der Leyen was one of the main
driving forces behind the agreement. In a statement, she has praised
it as “one of the most significant trade agreements of the first
half of this century.”
“Mercosur embodies the spirit with which Europe operates on the
global stage. Europe is strengthening itself and gaining
independence,” she said.
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AP writer Sam McNeil contributed to this report from Brussels.
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