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.

By Tomás Rydell

Focusing Facts

  1. Treaty signed 17 Jan 2026 in Paraguay, creating a 700 million-person market and cutting tariffs on >90 % of bilateral trade.
  2. Brazil was the only Mercosur country not represented by its head of state; Foreign Minister Mauro Vieira stood in for Lula.
  3. 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.

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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
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