Mercosur

Rule Changes

All four founding members completed domestic procedures by March 2026; the interim agreement applies provisionally since May 1, 2026

Negotiations between the EU and Mercosur began in 1999. Twenty-six years later, on January 17, 2026, representatives signed a comprehensive free trade agreement in Asunción, Paraguay—the same city where Mercosur itself was founded in 1991. The deal eliminates tariffs on more than 90% of bilateral trade and creates the world's largest free trade zone, covering over 700 million consumers and roughly a quarter of global GDP.

Updated Oct 23

Force in Play

As of May 2026: Under strain from Brazil-Argentina tensions

Brazil protected Argentina's embassy in Caracas for 14 months after Nicolás Maduro expelled Argentine diplomats in July 2024. That arrangement ended January 16, 2026, when Italy assumed custodianship. The shift was triggered by Brazil's opposition to the U.S. military operation that captured Maduro two weeks earlier, and accelerated by Argentine President Milei's sustained social media attacks on Brazilian President Lula.

Updated May 21