The association agreement between Mercosur and the European Union (EU) enters provisionally into force on Friday May 1, after more than a quarter-century of negotiations, in what constitutes one of the world's most ambitious trade deals and the largest reciprocal opening ever finalised by the South American bloc. The final signing took place on January 17 in Asunción and, although final ratification by the European Court of Justice and subsequent approval by the European Parliament remain pending, provisional entry into force allows the immediate start of tariff reductions covering 95% of Mercosur products and 91% of EU products.

Foreign residency applications in Paraguay surged 85% in the first quarter of 2026, reaching 18,071 compared to 9,760 in the same period of 2025, the National Migration Directorate reported. Temporary residency requests jumped 105% to 14,995, while permanent residency applications rose 25% to 3,076.

Hundreds of Brazilians camped overnight on beach chairs, plastic benches and tarps outside an immigration center in Ciudad del Este, on the border with Brazil, to secure a spot in a Paraguayan government drive to fast-track residency applications. Some organized an improvised barbecue on a barrel while they waited. Others had traveled more than 1,500 kilometers by bus. All shared a common thread: the desire to leave Brazil for reasons they describe as political, economic and ideological, according to a report by BBC News Brasil.

One year after the Trump administration launched its tariff offensive against more than 180 countries, Latin America presents a mixed picture: some economies lost competitiveness in the U.S. market, while others redirected exports or negotiated agreements to cushion the blow.

The presidents of Brazil, Luiz Inácio Lula da Silva, and Paraguay, Santiago Peña, agreed on Sunday in Campo Grande to intensify negotiations over Annex C of the Itaipú treaty, the instrument that governs the financial terms and energy sales of the binational hydroelectric dam, one of the largest in the world.

Brazil’s Congress on Tuesday promulgated the trade agreement between Mercosur and the European Union, completing the final domestic step required for the treaty to take effect on the Brazilian side. The ceremony was led by Senate and Congress President Davi Alcolumbre, who framed the pact as a sign in favor of trade, stability and integration at a time of wars and commercial tensions.