Argentina and Uruguay Approve Major EU-South America Trade Agreement

Feb 26, 2026

78 min

Feb 26, 2026 23:30

Argentina, Uruguay ratify massive EU-South America trade deal

## Historic Trade Deal Ratified

Argentina and Uruguay have officially ratified a significant trade agreement with the European Union, aiming to establish one of the largest free trade zones globally. The Argentine Senate overwhelmingly supported the deal with a 69-3 vote, following approval from the lower house. Uruguay was the first to ratify the agreement earlier the same day.

## Economic Impact and Challenges

The agreement, which has been in negotiation for 25 years, involves the EU and Mercosur's founding members: Argentina, Brazil, Paraguay, and Uruguay. It aims to eliminate tariffs on over 90% of trade between these regions, impacting a market of over 700 million consumers and accounting for 30% of global GDP.

While the deal is celebrated in South America, it faces opposition in Europe, particularly from farmers concerned about competition from South American agricultural products. The European Parliament has referred the agreement to the EU's top court, delaying its full implementation.

## Political Reactions

Argentine President Javier Milei praised the deal as a step towards economic growth and investment, urging Brazil and Paraguay to ratify it swiftly. Uruguayan Foreign Minister Mario Lubetkin described the ratification as a strong message to Europe, despite acknowledging potential implementation challenges.

## Future Prospects

The agreement is expected to boost EU exports of vehicles, machinery, and wines, while South American producers will gain better access to the European market for beef, sugar, and soybeans. Despite some EU nations' concerns, the European Commission has introduced measures to protect local producers. The deal's future depends on further ratification and legal decisions in Europe.

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