Berlin: Germany intends to become the first European Union country to ratify the Mercosur deal, Foreign Minister Johann Wadephul confirmed in early July 2026, pledging at the bloc-to-bloc summit in Asunción that Berlin would move within weeks to lock in the sprawling trade and political partnership with South America.
The EU-Mercosur agreement links the Union with Argentina, Brazil, Paraguay and Uruguay in one of the largest trade zones in the world, home to more than 700 million people. Its trade pillar has applied provisionally since 1 May 2026, cutting tariffs on cars, machinery, wine and chemicals heading south while opening the EU market to South American beef, poultry, sugar and ethanol.
Wadephul cast ratification as a strategic prize at a moment when Washington’s tariff threats and China’s growing reach have pushed Europe to court new partners.
“There will surely be some problems, but they are problems that can be resolved,” Wadephul told reporters, adding that ratification “will take our political partnership to an even higher level.”
Berlin’s industry lobby has pressed hard for the deal, arguing that German carmakers and engineering firms stand to gain most from lower Mercosur tariffs. Chancellor Friedrich Merz has backed the pact and defended the way Brussels pushed it through despite objections from Paris.
The politics remain fraught. The Council cleared the agreement for signature on 9 January 2026 by 21 votes to five, with Austria, France, Hungary, Ireland and Poland against and Belgium abstaining. A signing ceremony followed on 17 January in Asunción, and negotiators split the pact into an interim trade agreement so the tariff cuts could take effect without waiting for every national parliament.
French farmers remain the fiercest opponents, warning that cheaper South American beef and poultry raised under looser environmental and animal-welfare rules will undercut European producers. To calm them, Brussels attached a safeguard clause and a €6.3 billion reserve to compensate farmers hit by import surges.
Legal doubts linger too. In January 2026 the European Parliament referred parts of the deal to the European Court of Justice for an opinion on whether it respects EU treaties, a process that could run for many months. The Commission has published the full text and tariff schedules in its EU-Mercosur agreement pages, while the Council set out the signature decision in a January press release.
By ratifying early, Germany hopes to build momentum and press hesitant capitals to follow. The full association agreement needs approval from every member state’s parliament, so a single high-profile ratification carries symbolic weight even though it does not bind the others. Supporters argue the pact anchors South America in a rules-based trading order at a time of rising protectionism, while opponents insist it trades away Europe’s farmers and climate credibility. With Berlin now moving first, the Mercosur deal faces its next test in national capitals across the Union.




