Paraguay Finalizes Ratification of Mercosur-EU Trade Deal
Paraguay has officially become the last South American nation to ratify the significant free trade agreement between Mercosur and the European Union. This development marks the establishment of one of the world’s largest free trade zones.
The European Commission plans to provisionally ratify the agreement, which could come into effect amidst ongoing legal considerations in the European Court of Justice. The agreement, representing over 700 million people and 25% of global GDP, has been in negotiation for 25 years.
The Paraguayan deputies unanimously approved the deal, following the Senate’s earlier approval. President Santiago Peña’s signature is the final step in the ratification process. This makes Paraguay the fourth and last Mercosur founding member to endorse the agreement, after Uruguay, Argentina, and Brazil. Bolivia, a newer member, was not part of the initial negotiations but may join in the future.
Deputy Rodrigo Gamarra, from the Colorado Party and president of the Mercosur Parliament, described the agreement as “historic,” emphasizing its potential to create a major global market. During a nine-hour parliamentary session, many praised the possibilities the deal opens for both regions. Deputy Juanma Añazco referred to it as “the bridge to full integration,” while Deputy Alejandro Aguilera highlighted the lengthy negotiation process as a historic achievement.
Uruguay was the first South American country to ratify the agreement, with Argentina following closely. Brazil, being Mercosur’s largest economy, ratified the deal in March after its approval by both houses of Congress.
The European Parliament must still vote to ratify the deal once the legal challenges are resolved. Opposition has been voiced by France, left-wing groups, and farmers’ unions, citing concerns over potential impacts on the European agricultural sector.
This treaty arrives amidst global political and economic changes. European countries are facing security challenges and tensions with the United States. European Commission President Ursula von der Leyen, alongside Brazilian President Luiz Inácio Lula da Silva, has been a significant proponent of the deal, describing it as “one of the most significant trade agreements of the first half of this century.” She stated, “Mercosur embodies the spirit with which Europe operates on the global stage. Europe is strengthening itself and gaining independence.”
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