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<p class="font-claude-response-body break-words whitespace-normal leading-[1.7]"><strong>A major trade agreement between the European Union and four South American countries could begin operating as early as March, even though European lawmakers have sent it to the bloc’s highest court for review.</strong></p><p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">An EU official told Reuters on Thursday that the deal with Brazil, Argentina, Paraguay and Uruguay will likely start working on a temporary basis once the first South American country approves it. That country is expected to be Paraguay, which could ratify the agreement in March.</p><p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">The news comes one day after European Parliament members decided to send the trade pact to the European Court of Justice, a move that could push back full implementation by two years. The EU finished the deal with Mercosur members last Saturday after 25 years of back-and-forth negotiations, making it the <a href="https://www.consilium.europa.eu/en/press/press-releases/2026/01/09/eu-mercosur-council-greenlights-signature-of-the-comprehensive-partnership-and-trade-agreement/" rel="noopener noreferrer nofollow">largest trade agreement</a> the bloc has ever signed.</p><p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">The delay upset businesses in Germany and disappointed Chancellor Friedrich Merz, one of the deal’s strongest supporters. Speaking at the <a href="https://www.cryptopolitan.com/world-economic-forum-rattled-by-trump/" rel="noopener noreferrer nofollow">World Economic Forum</a> in Davos, Switzerland on Thursday, Merz expressed regret over the European Parliament’s decision.</p><p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">“But rest assured: We will not be stopped. The Mercosur deal is fair and balanced. There is no alternative to it if we want to have higher growth in Europe,” Merz told attendees.</p><p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">Those in favor of the agreement say it matters now more than ever as businesses look for ways to make up for losses from American tariffs and become less dependent on China for trade. On the other side, France leads a group of countries opposing the deal, arguing it will bring in low-cost beef, sugar and poultry that will hurt their own farmers.</p><div><div class="group"><div class="contents"><div class="group relative relative pb-3"><div class="font-claude-response relative leading-[1.65rem] [&amp;_pre>div]:bg-bg-000/50 [&amp;_pre>div]:border-0.5 [&amp;_pre>div]:border-border-400 [&amp;_.ignore-pre-bg>div]:bg-transparent [&amp;_.standard-markdown_:is(p,blockquote,h1,h2,h3,h4,h5,h6)]:pl-2 [&amp;_.standard-markdown_:is(p,blockquote,ul,ol,h1,h2,h3,h4,h5,h6)]:pr-8 [&amp;_.progressive-markdown_:is(p,blockquote,h1,h2,h3,h4,h5,h6)]:pl-2 [&amp;_.progressive-markdown_:is(p,blockquote,ul,ol,h1,h2,h3,h4,h5,h6)]:pr-8"><div><div class="standard-markdown grid-cols-1 grid [&amp;_>_*]:min-w-0 gap-3 standard-markdown"><h3 class="text-text-100 mt-2 -mb-1 text-base font-bold" id="india-poised-for-landmark-19th-trade-deal-with-eu">India poised for landmark 19th trade deal with EU</h3></div></div></div></div></div></div></div><p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">Meanwhile, India is preparing to finalize <a href="https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/india_en" rel="noopener noreferrer nofollow">a major trade agreement</a> with the European Union.&nbsp;Agriculture will not be part of the agreement, but it shows growing economic cooperation between India and the EU in other important areas.</p><p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">Top EU officials are expected to travel to New Delhi to complete <a href="https://www.cryptopolitan.com/india-germany-strike-economic-pacts/" rel="noopener noreferrer nofollow">the deal</a>, according to media reports. A report from Euractiv published on January 14, 2026, indicates that agriculture was deliberately left out of the agreement.</p><p class="font-claude-response-body break-words whitespace-normal leading-[1.7]">European Commission President Ursula von der Leyen reportedly told European Parliament members in a private meeting that the agreement would be signed this month and would not cover agricultural sectors. Von der Leyen and European Council President António Costa are expected to sign the agreement with Indian Prime Minister Narendra Modi during their New Delhi visit between January 25 and 27, 2026.</p><p class="lastp">Claim your free seat in an exclusive <a href="https://academy.cryptopolitan.com/the-crypto-trading-edge-offer?utm_source=syndication&amp;utm_medium=inlineads&amp;utm_campaign=tradingedge" rel="noopener noreferrer nofollow">crypto trading community</a> - limited to 1,000 members.</p>

European Union trade deal with South America could begin as early as March

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