Business & Economics
Mercosur-EU Mega-Deal Signed Without Brazil’s Lula Present
On 17 Jan 2026, Mercosur and the EU finally inked their 25-year free-trade pact in Asunción, but Brazil’s President Lula da Silva stayed in Rio and sent his foreign minister instead.
Focusing Facts
- Treaty signed 17 Jan 2026 in Paraguay, creating a 700 million-person market and cutting tariffs on >90 % of bilateral trade.
- Brazil was the only Mercosur country not represented by its head of state; Foreign Minister Mauro Vieira stood in for Lula.
- 150+ Members of the European Parliament have signalled moves to delay or block ratification, forcing Brussels to consider provisional application of non-trade chapters.
You've read the facts. The perspectives are behind this line.
Perspectives in this article
- Pro-EU multilateralist commentary
- Protectionist-minded coverage stressing agricultural/job risks
- Political reporting on Lula’s no-show and intra-bloc friction