In a significant development for international trade, Paraguay has ratified the free trade agreement between Mercosur and the European Union, marking the completion of the legislative process required by all founding member countries. The Paraguayan Congress unanimously supported the agreement with 57 votes in favor. This ratification is crucial as it creates the world's largest free trade area, promising to enhance economic interactions significantly between the participating nations.

The agreement aims to abolish tariffs on more than 90% of goods exchanged between Mercosur countries and the EU, which together account for approximately 30% of the global GDP and encompass more than 700 million consumers. With Paraguay's ratification, all original members of Mercosur—including Argentina, Brazil, and Uruguay—have now officially approved the treaty. Their earlier ratification, particularly that of Uruguay, stirred some tension with Argentina, whose president expressed dissatisfaction with the timing of the approvals.

Following this ratification, the Brazilian Congress also enacted the treaty recently, aligning with Paraguay's approval. The provisional validity of the agreement is expected to commence shortly, paving the way for enhanced trade relations and economic cooperation between South America and Europe. This agreement signals a shift towards increased international collaboration for Mercosur, potentially generating significant economic benefits for the region.