Argentina and Uruguay First to Approve Historic EU-South America Trade Deal

Two South American nations have become the first to formally approve a massive trade agreement with the European Union after 25 years of negotiations. The deal would create one of the world’s largest free-trade zones covering over 700 million people.

Two founding members of South America’s Mercosur trading bloc made history Thursday by becoming the first nations to formally approve a groundbreaking trade agreement with the European Union that has been in negotiations for 25 years.

Uruguay’s lower legislative chamber overwhelmingly endorsed the deal with a decisive 91-2 vote, following Wednesday’s unanimous Senate approval. Meanwhile, Argentina’s Senate passed the agreement by a commanding 69-3 margin without any abstentions, after the nation’s Chamber of Deputies had already given their approval on February 12th.

Following Uruguay’s historic vote, Congressman Juan Martín Rodríguez declared: “Uruguay has sent a strong message to the United States, Mercosur and Europe: that we have waited 25 years, but we are not willing to wait a single second longer.”

The comprehensive trade pact encompasses nations that collectively represent more than 700 million residents and account for approximately 25% of the world’s total economic output. Brazil and Paraguay, the remaining two original Mercosur members, are expected to ratify the agreement within the coming weeks.

The trans-Atlantic agreement received official signatures on January 17th, finally breaking through a 25-year stalemate that had been maintained by European farming interests worried about competitive disadvantages. However, European legislators have since filed a legal challenge in the bloc’s highest court, questioning the agreement’s legality. While a judicial ruling may take several months, European Commission President Ursula von der Leyen previously indicated the EU would move forward once at least one Mercosur country completed ratification.

When fully operational, the trade zone will establish what von der Leyen has described as a significant demonstration of international cooperation amid what she characterized as “the face of an increasingly hostile and transactional world.”