Uruguay has taken the lead by becoming the first nation to ratify the trade agreement between the European Union and Mercosur, marking a major step toward bringing the long negotiated deal into force.
Uruguay’s Chamber of Deputies approved the agreement on February 26, 2026, following the Senate’s endorsement the previous day. With both legislative chambers backing the text, Montevideo has positioned itself at the forefront of the ratification process within the South American bloc.
Brazil, Argentina and Paraguay, the other Mercosur member states, are now expected to formally approve the agreement in the coming days to enable its full implementation across the bloc. The deal was signed in January after years of complex negotiations.
The agreement seeks to establish a broader free trade framework between Europe and South America by gradually reducing tariffs and granting reciprocal trade preferences. If fully implemented, it is expected to significantly expand commercial exchanges across the Atlantic.
Under the terms of the deal, European companies are set to gain greater access to Mercosur markets for industrial and consumer goods, including automobiles, mechanical equipment, wines and spirits. In return, agricultural exports from Mercosur countries are expected to benefit from improved access to European markets.
Officials anticipate that the phased reduction of customs duties will boost European industrial exports while increasing imports into the EU of South American agricultural products such as beef, poultry, sugar, rice, honey and soybeans.
Supporters argue the agreement will strengthen economic ties between the two regions, open new opportunities for businesses and enhance long term trade flows. However, it may also reshape competitive dynamics in sensitive sectors, particularly agriculture and manufacturing, on both sides.
The agreement’s final impact will depend on the pace of remaining ratifications and how regulatory and environmental standards are managed during implementation. Debate is likely to continue in member states over competitiveness, sustainability and market protections.
By ratifying first, Uruguay has sent a clear signal of commitment to trade liberalization and deeper integration, placing pressure on its Mercosur partners to follow through and finalize the bloc’s next major trade milestone.
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