The EU-Mercosur trade deal, linking Europe with four South American nations, takes effect May 1, 2026, after Paraguay's approval, pending any European Court of Justice block.

A landmark EU-Mercosur free trade agreement will take effect on May 1, 2026, linking the EU with Argentina, Brazil, Paraguay, and Uruguay—four South American nations representing over 700 million people and 25% of global GDP. The deal, the result of over 25 years of negotiations, aims to reduce economic reliance on China and the U.S. amid rising global tensions. It was triggered by Paraguay’s formal approval, though Bolivia, a newer Mercosur member, did not participate. The European Commission says the agreement will boost trade, growth, and jobs, despite opposition from French and Polish farmers and environmental groups. The deal will begin provisionally unless blocked by the European Court of Justice.