On Thursday, the Argentine Chamber of Deputies sanctioned the treaty for the Mercosur agreement with the European Union, fulfilling President Javier Milei's promise to be the first Mercosur country to approve the accord. The vote concluded with 203 in favor, 42 against, and 4 abstentions, demonstrating a significant legislative support for this trade agreement. The next step is for the Senate to discuss and vote on the treaty before it can be finalized.

This agreement aims to create a broad free trade area that encompasses a market of over 720 million people. The European Union is expected to eliminate tariffs on 92% of Mercosur exports, which could amount to around $61 billion. With this trade deal, Argentina is poised to significantly boost its exports, with projections indicating an increase of up to 122% in the next decade. Key sectors such as energy, mining, lithium, and hydrocarbons are expected to benefit the most from this growth in exports.

Additionally, the agreement will also allow for the diversification and expansion of Argentine exports, including a wider range of products and services in trade between Mercosur and the EU. The current government in Brazil has already made moves to present the agreement for consideration in Congress, indicating a regional effort to enhance economic ties with Europe through this landmark treaty.