Uruguay First to Sign EU-South America Trade Agreement
Last update: February 27, 2026
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Montevideo backs landmark agreement as South American partners move toward adoption despite European opposition.
Uruguay on Thursday became the first country to ratify a sweeping trade agreement with the European Union that also involves Brazil, Argentina and Paraguay.
The country’s lower house of parliament approved the accord after it had already secured the backing of the Senate, despite fierce opposition from farmers in several EU member states.
Argentina was expected to finalise its own approval later the same day, following a strong endorsement of the deal by Brazil’s Chamber of Deputies on Wednesday.
The agreement between the European Union and the four Mercosur members was signed in January after 25 years of negotiations and would create one of the largest free trade areas in the world.
However, within days of being signed, the pact faced a legal challenge at the Court of Justice of the European Union, raising uncertainty about its future.
South American governments that strongly supported the deal are pressing ahead with ratification regardless of the case before the EU court.
In Uruguay, lawmakers voted overwhelmingly in favour of the agreement, with 91 votes supporting it and only two against, mirroring the strong approval it received in the Senate.
The accord will remove tariffs on more than 90 percent of trade between the EU and Mercosur countries.
Farmers in France, Spain and other European nations have warned that the deal could expose them to competition from lower priced agricultural goods from Brazil and its neighbours.
