The internal ratification process of the Provisional Free Trade Agreement between the Southern Common Market (MERCOSUR) and the European Union made decisive progress during March 2026, after Paraguay enacted the law that ratifies the bi-regional understanding, completing the internal procedures of the South American bloc.
According to official information, The President of Paraguay, Santiago Peña, enacted Law No. 7634/2026, previously approved by the National Congress, through which the agreement is incorporated into the Paraguayan legal system.
With this decision, Paraguay joins Argentina, Brazil, and Uruguay, which had already completed their internal legislative processes, thus completing MERCOSUR's internal approval cycle in March 2026, a necessary condition to move towards the entry into force of the interim trade agreement with the European Union.
According to European authoritiesThe application of the provisional agreement is scheduled for May 1 for parties that have completed their internal ratification procedures and made the corresponding formal notification before the end of March.
In this context, the interim trade agreement between the European Union and the MERCOSUR Member States not only expands trade opportunities but also reaffirms economic integration in line with the WTO legal framework. It is worth recalling that Article 1 of the Agreement establishes a free trade area in accordance with Article XXIV of the GATT 1994 and Article V of the General Agreement on Trade in Services (GATS), thus laying the foundation for a more stable, transparent, and predictable trade relationship between the two regions.
Ratification of the MERCOSUR-EU Agreement: status by State Party as of March 31, 2026
| Country | Key date | Legislative action | Actual state |
| Argentina | 26/02/2026 | Law 27.800 and Decree 111/2026 | Internal ratification completed and promulgated (*) |
| Uruguay | 26/02/2026 | Law No. 20.462/2026 | Internal ratification completed and promulgated (**) |
| Brazil | 17/03/2026 | Legislative Decree 14/2026 (PDL 41/26) | Internal ratification completed and promulgated by the Executive Branch (***) |
| Paraguay | 30/03/2026 | Senate approval and Chamber of Deputies enactment — Law No. 7634/2026 | Internal ratification completed and promulgated by the Executive Branch (****) |
(*) https://www.boletinoficial.gob.ar/detalleAviso/primera/5992204/20260226?suplemento=1
(**) https://www.gub.uy/presidencia/institucional/normativa/ley-n-20462-fecha-26022026-se-aprueba-acuerdo-interino-comercio-entre
(***) https://legis.senado.leg.br/norma/42902412
(****) https://www.presidencia.gov.py/noticias/paraguay-promulga-ley-del-acuerdo-mercosur-union-europea-y-abre-acceso-a-uno-de-los-mayores-mercados-del-mundo/ and https://www.gacetaoficial.gov.py/index/detalle_publicacion/94976
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