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EU member states confirm approval of signing EU-Mercosur trade agreement

Published by Global Banking & Finance Review

Posted on January 9, 2026

1 min read

· Last updated: February 27, 2026

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BRUSSELS, Jan 9 (Reuters) - European Union member states confirmed on Friday a broad majority of them support a planned free trade agreement with South American bloc Mercosur, Cyprus, which holds the

EU member states confirm approval of signing EU-Mercosur trade agreement

Overview of the EU-Mercosur Trade Agreement

BRUSSELS, Jan 9 (Reuters) - European Union member states confirmed on Friday a broad majority of them support a planned free trade agreement with South American bloc Mercosur, Cyprus, which holds the EU rotating presidency, said.

Significance of the Trade Deal

EU capitals had had until 5 p.m. Brussels time (1600 GMT) to confirm their votes in writing after ambassadors of the EU's 27 members signalled their provisional approval of the deal a few hours earlier.

Next Steps for Approval

The deal is set to be the largest trade accord the EU has concluded, although it will still require approval from the European Parliament before it can enter force.

European Parliament's Role

(Reporting by Inti Landauro, editing by Philip Blenkinsop)

Key Takeaways

  • EU member states support the EU-Mercosur trade agreement.
  • The deal is the largest trade accord the EU has concluded.
  • Approval from the European Parliament is still required.
  • Cyprus holds the EU rotating presidency during this approval.
  • The agreement involves a significant trade bloc in South America.

Frequently Asked Questions

What is Mercosur?
Mercosur is a South American trade bloc comprising Argentina, Brazil, Paraguay, and Uruguay, aimed at promoting free trade and economic integration among its member countries.
What is the role of the European Parliament?
The European Parliament is the legislative body of the EU, responsible for debating and passing European laws, including those related to trade agreements.
What are economic benefits?
Economic benefits refer to the positive financial impacts that result from a particular action or policy, such as increased trade, job creation, or improved economic growth.

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