Lawmakers in Argentina ratify the sweeping trade deal between Mercosur and the European Union, hours after Uruguay did the same; Senate follows Lower House approval with a massive majority vote of 69 in favor and three against.Argentina has become the latest nation to formally ratify the sweeping trade deal between the Mercosur regional trade bloc and the European Union.
A quarter of a century after negotiations began, senators in Argentina’s Upper House voted in favor of the accord by a huge majority: 69 votes in favor and just three against. President Javier Milei was quick to sign the pact into law, giving it final promulgation.
The main opposition Peronist caucus had already indicated it would back the deal. The Lower House (Chamber of Deputies) had previously greenlit the agreement earlier this month with cross-party support, resulting in 203 votes in favor and 42 against.
Strategic Importance
The congressional sign-off of the deal—which creates a market of approximately 700 million consumers and represents around a quarter of global GDP—is expected to strengthen Argentina’s international standing and open new export markets.
President Javier Milei’s government hailed the milestone, though celebrations were slightly tempered by the news that Uruguay beat Argentina to the punch—its lawmakers had approved the deal barely an hour earlier. The Argentine government had hoped to be the first Mercosur nation to ratify the treaty after 25 years of complex negotiations and multiple setbacks.
Key Aspects of the Deal
The EU–Mercosur deal was formally inked on January 17 in Asunción. According to its promoters, the agreement will:
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Remove tariffs on 92% of Mercosur exports and grant preferential access to a further 7.5%.
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Reduce barriers to entry for industrial goods from Europe, such as chemicals, pharmaceuticals, machinery, clothing, and beverages.
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Boost key sectors: Ruling party Senator Francisco Paoltroni argued the deal would strengthen the export profile of minerals, hydrocarbons, and regional economies.
International Outlook
While South American countries are pressing ahead with ratification, the deal still requires approval from the European Parliament, which has referred it to the EU’s top court.
Some EU nations, such as Germany and Spain, are enthusiastic about the pact as a boost to exports. However, France has unsuccessfully tried to block the agreement over concerns that its farmers could be undercut by a flood of cheaper goods from Brazil and its neighbors.
Additional Appointments
In their first activity of the day, Argentina’s senators also approved the nomination of former deputy Fernando Iglesias as the nation’s ambassador to Belgium and the European Union, with 38 votes in favor and 31 against.
SOURCE: www.batimes.com.ar