On March 26, Uruguay officially became the first country to ratify the free trade agreement between Mercosur and the European Union, following overwhelming approval in its Congress. The Uruguayan Chamber of Deputies voted 91 to 2 in favor of the agreement, just one day after the Senate had unanimously endorsed it. Argentina is also expected to ratify the document on the same day, while Brazil and Paraguay are anticipated to finalize their parliamentary ratification processes shortly thereafter, marking a significant step forward in regional trade relations.

The trade agreement, which was signed in January 2021 in Asunción, represents more than 25 years of negotiations between the two blocs. Uruguayan Foreign Minister Mario Lubetkin described the ratification as "historic" and a "signal to Europe," highlighting Uruguay's role in advancing trade cooperation in Latin America. The agreement is expected to bolster economic ties between the Mercosur countries and the EU, benefitting a wide range of sectors, including agriculture, manufacturing, and services.

However, the agreement has faced strong backlash from some European countries, notably France, which has raised concerns over environmental and labor standards associated with the trade deal. In January, France referred the document to the European Court, effectively suspending its formal application. Despite these challenges, the European Union may still opt to implement the agreement provisionally, emphasizing the delicate balance between promoting international trade and addressing domestic concerns regarding its impacts.