On Tuesday, Paraguay became the final South American counattempt to ratify the free trade agreement between Mercosur and the European Union, which will establish one of the world’s largest free trade zones. This landmark agreement has been under neobtainediation for a quarter century among nations that collectively represent over 700 million residents and account for 25% of global gross domestic product (GDP).
The agreement received unanimous approval from the 58 Paraguayan deputies present during the session, nearly two weeks after the Senate finishorsed it. Following this approval, the agreement now awaits the signature of President Santiago Peña. With this ratification, Paraguay joins Uruguay, Argentina, and Brazil as the fourth and final founding member of Mercosur to support the agreement.
Additionally, while Bolivia, the newest member of Mercosur, did not participate in the neobtainediations, it will have the opportunity to join the agreement in the coming years.
“This is a historic agreement for Paraguay, for the region, and for the world. We are creating what is possibly the largest market in the world,” declared Deputy Rodrigo Gamarra, from the ruling Colorado Party and current president of the Mercosur Parliament (Parlasur).
The session lasted more than nine hours. Deputies praised the opportunities that the agreement will open up for both blocs.
“This provisional agreement is the bridge to full integration,” declared Deputy Juanma Añazco, also from the Colorado Party.
“It was years and years of neobtainediations and reluctance … achieving this is truly historic,” added Deputy Alejandro Aguilera, also from the ruling coalition.
Several sectors of the opposition have expressed their support for the recent agreement, with indepfinishent Deputy Raúl Benítez remarking, “Where there is isolation, we respond with multilateralism.”
The recent vote in Paraguay has successfully concluded the process of accession and validation of the agreement from the South American perspective. Uruguay was the first South American nation to ratify the agreement, doing so in late February. On the same day, Argentina also completed its ratification process, achieving significant majorities in both the Senate and the Chamber of Deputies. Brazil, as Mercosur’s largest economy, followed closely behind, with its Senate unanimously ratifying the alliance in early March after the lower houtilize approved it.
The European Commission, the executive branch of the European Union, has indicated its intention to ratify the deal provisionally. This provisional ratification means the agreement will take effect even as legal challenges from European lawbuildrs are addressed in the European Court of Justice. It is noteworthy that legislative bodies across the EU’s 27 member states are not required to ratify this significant trade deal indepfinishently; however, the European Parliament will hold another vote on ratification once the court case concludes, contingent upon a determination that the agreement does not violate EU treaties.
Opposition to the free trade agreement has emerged primarily from France, as well as from left-wing groups and farmers’ unions, who contfinish it may destabilise the European agricultural sector. This treaty is being considered during a period of political fragmentation and economic realignment that presents challenges to the international landscape. Many European countries are currently facing security concerns and navigating ongoing tensions with the United States.
Prominent figures supporting the agreement include Brazilian President Luiz Inácio Lula da Silva and European Commission President Ursula von der Leyen, the latter of whom described it as “one of the most significant trade agreements of the first half of this century.”
“Mercosur embodies the spirit with which Europe operates on the global stage. Europe is strengthening itself and gaining indepfinishence,“ she declared.
This article utilized information from The Associated Press.
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