On Wednesday (December 10, 2025), the federal government gave the green light for the signing of the agreement between the European Union (EU) and Mercosur, which has been negotiated for 25 years and currently consists of Argentina, Brazil, Uruguay and Paraguay.
“The goal is to create one of the largest free trade zones in the world with more than 700 million inhabitants,” said an official statement.
The federal government “will continue to exert intensive pressure on the member states of the European Union to agree to the EU signing the agreement so that the necessary qualified majority is achieved,” said deputy spokesman Steffen Meyer.
The German middle class and its possible entry into a market with 260 million people
The agreement “promotes more resilient and diversified supply chains,” he added. In addition, “EU companies, especially export-oriented German medium-sized companies, will have better access to a previously relatively underdeveloped market of more than 260 million people.”
The German executive also stressed that the deal would “eliminate tariffs on numerous EU exports to Mercosur countries, such as vehicles and textile products,” while “easing the export of meat, sugar and rice to the EU.”
The declaration also emphasizes the shared commitment to “democratic principles”, the rule of law, human rights and the non-proliferation of weapons of mass destruction. In addition, the commitment to “international environmental, labor and social standards” is emphasized.
Because it is a mixed agreement affecting both EU and member state powers, it must be ratified by all members of the bloc.
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