France looks to European Parliament to sink Mercosur trade deal

(L to R) Panama's President Jose Raul Mulino, Bolivia's President Rodrigo Paz, President of the European Council Antonio Costa, President of the European Commission Ursula von der Leyen, Paraguay's President Santiago Pena, Argentina's President Javier Milei, Uruguay's President Yamandu Orsi and Brazil's Foreign Minister Mauro Vieira attend the signing ceremony of the trade agreement between the European Union and Mercosur, in Asuncion, Paraguay, on 17 January 2026. © Luis Robayo / AFP

Officially signed on Saturday, the Mercosur deal is closer than ever to making one of the world's largest free trade zones a reality – 25 years after the European Union first began negotiating it with the South American bloc. But France and other countries that oppose it are hoping key votes in the European Parliament could yet block the agreement coming into force.

First proposed in 1999, the deal wipes out billions of euros of tariffs on trade between the EU and Argentina, Brazil, Paraguay and Uruguay.