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Mercosur Agreement Waits On Court As Farm Fears Persist

Montevideo: The Mercosur agreement signed in Asunción on 17 January 2026 has split the two continents it was meant to join. South American parliaments moved fast, while the European Parliament chose to wait for a legal opinion. The latest reporting reviewed for this article dates from February 2026, so later developments, including any Court ruling, are not covered here.

The signing ended about 25 years of talks. According to a Buenos Aires Times report republished by Bilaterals, the Mercosur agreement will remove tariffs on 92 percent of bilateral trade in stages, across a market of more than 700 million consumers. Sector timelines differ, which is why farm goods draw the most attention.

In Europe the brake came on 21 January 2026. Carbon Pulse reported that Parliament voted to suspend ratification until the Court of Justice of the European Union assesses whether the Mercosur agreement fits the EU treaties. That outlet notes such an opinion usually takes 16 to 18 months. The Buenos Aires Times report from 26 February says the request is still pending and could slow full ratification.

Mercosur states acted differently. Uruguay’s parliament completed approval on 26 February, with the lower house voting 91 to 2. Argentina’s Senate approved the text the same day by 69 votes to 3. Brazil’s lower house backed it on 25 February, with the Senate still to vote, and Paraguay’s lawmakers were expected to take it up in early March.

Farmers are the fault line. The Bilaterals report calls agricultural sensitivities a key divide in several EU countries, with Germany and Spain among the supporters. The sources reviewed do not describe the safeguard rules for beef, poultry or sugar, so readers should not assume how far the text protects European producers, and farm lobbies will press for clarity before any vote.

Uruguay’s government offers one measure of the stakes for the other side. Its economy ministry estimates the Mercosur agreement could add 1.5 percentage points to GDP and lift exports by about 4 percent. The European Union ranked as Uruguay’s third-largest goods export market in 2025, behind China and Brazil.

Brussels also floated provisional application of parts of the deal while legal steps continue, according to the same report, though no source reviewed confirms a Council decision. The next signals are the Court’s opinion, the Brazilian and Paraguayan votes, and any move on safeguards. Until they arrive, the Mercosur agreement is a signed text that neither side can fully use.