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SANTIAGO, Chile (AP) — Paraguay on Tuesday became the latest and final South American country to ratify the landmark free trade agreement between Mercosur and the European Union, which will establish one of the world’s largest free trade zones.
The deal has been negotiated for a quarter century among countries that are now home to more than 700 million people and account for 25% of global gross domestic product. It was unanimously approved by the 58 Paraguayan deputies present in the session, nearly two weeks after the Senate gave its green light. After the endorsement, it now awaits President Santiago Peña’s signature.
With today’s vote, Paraguay became the fourth and final of the Mercosur founding members to ratify the agreement, following Uruguay, Argentina and, most recently, Brazil.
Bolivia, the newest Mercosur member, didn’t participate in the negotiations, but will be able to join the deal in the coming years.
“This is a historic agreement for Paraguay, for the region, and for the world. We are creating what is possibly the largest market in the world,” said Deputy Rodrigo Gamarra, from the ruling Colorado Party and current president of the Mercosur Parliament (Parlasur).
During the session, which lasted more than nine hours, deputies praised the opportunities that the agreement will open up for both blocs.
“This provisional agreement is the bridge to full integration,” said Deputy Juanma Añazco, also from the Colorado Party.
“It was years and years of negotiations and reluctance … achieving this is truly historic,” added Deputy Alejandro Aguilera, also from the ruling coalition.
Sectors of the opposition also expressed support for the agreement, with independent Deputy Raúl Benítez noting that “where there is isolation, we respond with multilateralism.”
The vote in Paraguay concludes the process of accession and validation of the agreement on the South American side.
Uruguay was the first South American nation to ratify the agreement in late February. The same day, Argentina also completed the ratification process with a large majority in both the Senate and the Chamber of Deputies.
Brazil, Mercosur’s largest economy, didn’t wait to follow its neighbors. The Senate unanimously ratified the alliance in early March after receiving approval from the lower house.
The European Commission, the EU’s executive branch, has said it will provisionally ratify the deal, meaning the agreement would take effect even as a legal challenge by European lawmakers winds its way through the European Court of Justice.
Legislative bodies across the EU’s 27 nations don’t need to individually ratify the major trade deal, but the European Parliament will again vote on ratifying it if and when the court case concludes that the agreement doesn’t break EU treaties.
