BRASILIA — The Mercosur-European Union trade agreement provisionally entered into force on May 1, 2026, after the European Commission decided to enact the accord by bypassing the European Parliament. The deal, reached in late 2024 and signed on January 17, faced delays in December 2024 due to opposition from farmers and environmentalists, and EU lawmakers referred it to the bloc's judiciary.

Brazilian Vice President Geraldo Alckmin, one of the key negotiators of the accord, described the scope of the pact. "It is the biggest deal between trade blocs in the world. A market of $22 trillion and 720 million people." he said.

Alckmin also characterized the outcome as mutually beneficial. "It is a win-win. The societies of the Mercosur countries win, and so the 27 countries of the EU." he said.

Alckmin expects Brazilian exports to the EU to increase by about 13% per year after the deal is implemented. Brazil's gross domestic product was estimated at more than $2.3 trillion in 2025. Full implementation of the agreement may take up to 12 years, with the fruit, beef, and sugar industries of Mercosur expected to be among the first to benefit.

The deal will be suspended if the European Court of Justice rules against it. European Commission President Ursula von der Leyen paid tribute to the efforts of the administration of President Luiz Inácio Lula da Silva in making the deal happen despite opposition in Europe. French President Emmanuel Macron demanded safeguards to monitor economic disruptions in the EU, increased regulations such as pesticide restrictions in Mercosur nations, and more inspections of imports at EU ports.

Lula appointed Alckmin as Minister of Trade and Industry after the two campaigned together in 2022 against then-President Jair Bolsonaro. Negotiations are underway on potential trade deals between Mercosur and the United Arab Emirates and Canada.