Lula Sends Deal to Congress
On 2 February 2026, President Luiz Inácio Lula da Silva formally transmitted the EU-Mercosur agreement to Brazil's National Congress. The text appeared in an extra edition of the Diário Oficial da União. Vice-President Geraldo Alckmin pledged a fast-track legislative process. Speaker of the Chamber Hugo Motta and Senate President Davi Alcolumbre committed to treating the bill as a priority.
Brazil accounts for over 70% of Mercosur's GDP. Without its ratification, provisional application would not cover the bloc's largest market. The EU eliminates tariffs on 95% of Brazilian goods within 12 years; Mercosur eliminates tariffs on 91% of EU goods within 15 years. For Brazilian agribusiness — the world's largest exporter of beef and soy — the stakes are enormous. For European exporters, the Brazilian market of 210 million consumers is the biggest prize.
The strategic calculus runs deeper. In early February 2026, Uruguayan President Yamandú Orsi visited Beijing. A joint statement with Xi Jinping expressed hope that Mercosur-China partial trade talks would begin "as soon as possible." The format under discussion focuses on non-tariff barriers rather than tariffs — a way to avoid direct overlap with the EU-Mercosur deal. The message to Brussels: Mercosur has alternatives. Every month of delay in European ratification gives China time to strengthen its position.
Argentina's Chamber of Deputies approved the agreement on 13 February (203–42–4). Brazil cannot afford to lag behind. Article 23.2 governs entry into force; Article 23.3 allows provisional application between the EU and one or more Mercosur states that have completed their internal procedures. Brazil does not need to wait for Paraguay or Uruguay — and vice versa. But for the European Commission, provisional application with Brazil is far more valuable than with any other Mercosur country.
Sources: Agência Brasil (02.02.2026), Valor Econômico, G1, China-Global South Project (07.02.2026).
“The provisions of this Agreement aim at a modern and mutually advantageous trade agreement which creates a predictable framework to boost trade and economic activity.”
— Chapter 1 - Initial Provisions, Article 1.2