Brazil’s Senate has given unanimous approval to a massive trade agreement between South American nations and the European Union. The deal, which took over 25 years to negotiate, would create a combined market of more than 700 million people.
Brazil’s Senate voted Wednesday to unanimously approve a sweeping free-trade agreement linking South American countries with the European Union, moving the historic deal closer to reality after more than two decades of negotiations.
The upper chamber’s approval follows similar action by Brazil’s lower house of Congress, advancing an agreement that would unite markets representing over 700 million consumers worldwide.
Two other South American bloc members, Argentina and Uruguay, have already given their approval to the trade pact, while Paraguay is anticipated to follow suit. Bolivia, the most recent addition to the Mercosur trading group, wasn’t part of the original negotiations but may participate in future years.
As Mercosur’s dominant economic force, Brazil carries significant weight with its economy projected to exceed $2.3 trillion in 2025. Brazilian President Luiz Inácio Lula da Silva championed the agreement, though it still awaits final approval from Europe’s highest court.
European Commission President Ursula von der Leyen has consistently praised Lula’s leadership in advancing the deal despite European resistance. Officials estimate the combined economies involved total approximately $22 trillion in gross domestic product.
Brazilian diplomatic sources and Vice President Geraldo Alckmin indicate portions of the agreement could take effect within months, even as legal challenges continue in Europe – a timeline von der Leyen supports.
“Brazil’s Congress once more is showing its institutional maturity and a move like this shows that it is siding with our society,” Sen. Davi Alcolumbre, the president of Brazil’s Senate, said after the deal was ratified.
The cross-Atlantic agreement received official signatures on January 17, ending a quarter-century stalemate driven largely by European agricultural worries about competitive disadvantages.
However, European farmers have staged recent protests, using tractors to block roadways and setting off fireworks in Brussels to demonstrate their opposition to the trade arrangement.
French President Emmanuel Macron, among the deal’s critics, has called for protective measures to prevent major economic disruption within the EU, stronger environmental regulations in South American countries including pesticide controls, and enhanced inspection procedures for imports entering European ports.