Uruguay has made a significant step by becoming the first country to ratify the EU-Mercosur agreement, which was approved today by its Parliament, just a day after receiving the green light from the Senate. This move marks a crucial milestone in the long-discussed agreement between the EU and the South American trade bloc Mercosur, which includes Brazil, Argentina, and Paraguay, who are expected to ratify the agreement in the coming days. The approval is seen as a vital step towards enhancing trade relations between Europe and South America, especially given the agreement’s potential to open new markets for both regions.

However, the ratification process faces hurdles, as the European Parliament lodged a challenge with the European Court of Justice in late January regarding the legality of the agreement. This legal proceeding could delay the ratification by about a year and a half, despite the European Commission holding the authority to implement the agreement temporarily pending the court's ruling. The complexities surrounding the agreement highlight the ongoing debates within the EU about the potential impacts on local industries, particularly agriculture, which many fear could be adversely affected by increased competition from South American imports.

The varying perspectives from EU member states further complicate the matter. Countries like Germany and Spain are advocating for the swift implementation of the agreement, recognizing the potential benefits for trade and economic growth, while France has voiced strong opposition, concerned about the implications for its agricultural sector. As the ratification process unfolds, observers will closely watch how the EU’s legal challenges and internal disagreements will shape the future of this landmark trade agreement and its associated impacts on global trade dynamics.