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EU-Mercosur Trade Deal: World's Largest Free Trade Agreement Signed - News Directory 3

EU-Mercosur Trade Deal: World’s Largest Free Trade Agreement Signed

January 17, 2026 Victoria Sterling Business
News Context
At a glance
  • The Mercosur and the European Union (EU) signed a historic free trade agreement this Saturday in ‍Asunción,after 26 years of negotiations,which‌ will create one of the largest integrated...
  • European Commissioner for Trade, Maroš Šef?ovi?,​ and the ⁣foreign ministers ⁣of⁣ the Mercosur ‍countries, Pablo Quirno (Argentina), Mauro vieira (Brazil),⁢ Rubén Ramírez (Paraguay) and Mario ⁢Lubetkin (Uruguay), sealed...
  • The‍ pact will allow the two blocs, which together add up to⁣ 31 countries and represent close to a quarter of the world economy, to ‍ gradually reduce...
Original source: eleconomista.es

The Mercosur and the European Union (EU) signed a historic free trade agreement this Saturday in ‍Asunción,after 26 years of negotiations,which‌ will create one of the largest integrated areas in the world,with 720 million people.

European Commissioner for Trade, Maroš Šef?ovi?,​ and the ⁣foreign ministers ⁣of⁣ the Mercosur ‍countries, Pablo Quirno (Argentina), Mauro vieira (Brazil),⁢ Rubén Ramírez (Paraguay) and Mario ⁢Lubetkin (Uruguay), sealed ‍the treaty with their signatures in a ceremony at the headquarters of ⁤the Central Bank of Paraguay, before hundreds of guests and amid strong‍ applause.

The‍ pact will allow the two blocs, which together add up to⁣ 31 countries and represent close to a quarter of the world economy, to ‍ gradually reduce or ‍eliminate tariffs for around​ 90% of their imports and exports.

The ceremony was attended, as ⁣ guests of honor, by three ‌of the four presidents of the countries that make up the‌ Southern common Market (Mercosur): Javier Milei (Argentina), Santiago Peña (Paraguay, which holds the semesteral ⁣presidency of the​ group) and Yamandú Orsi (Uruguay).

The only ‌absentee was‍ the Brazilian Luiz Inácio Lula da​ Silva, one of the great promoters ⁣of the agreement with the Europeans⁢ and who‌ did not attend due to last-minute ⁣protocol changes.

A “strong” ​signal against tariffs

The President of the European Commission, Ursula von der Leyen,​ highlighted the importance of an agreement that means “choosing​ cooperation over division“.‌ “The countries of latin America ⁣have⁣ rejected rivalry and reaffirmed democracy ‌and‍ have united ⁣peoples across borders and rivers,” she stated. She also insists that‌ this agreement sends a “strong” signal to the world, by choosing “fair trade‌ over tariffs” and “isolation”.

the president of the European Commission, Ursula von der leyen, defended ​this Saturday in⁤ Asunción that the signing of the free trade agreement between the European Union (EU) and the mercosur countries

Von der ‌Leyen recalled that EU and Mercosur together‍ represent‌ “almost ‍20% ​of global GDP”. ​”This agreement sends a ‌very powerful message to the world. It reflects a clear and intentional‍ choice,” she explained. ⁣”The agreement with Mercosur is the achievement of a generation for the benefit of future generations. Long live the friendship between our peoples‌ and between our​ countries,” she remarked

The head of the

The‌ European Union and Mercosur have signed the largest trade agreement in the world after 26 years of negotiations. The agreement was signed in Asunción, Paraguay, with the notable absence​ of Brazilian President Luiz Inácio ​Lula da Silva.The agreement, reached after‍ decades of on-again, ​off-again talks, aims to eliminate tariffs on a wide​ range of goods, boosting trade between the⁢ two blocs. It‌ covers a combined market of over 780 million ⁣people and represents a important​ step towards greater economic integration.

However, the deal ⁣has faced‌ criticism from environmental groups and some sectors concerned about its potential impact on local industries and sustainability. Concerns have been‌ raised regarding deforestation in​ the Amazon rainforest and ‍the enforcement of‌ environmental standards.

Despite these ‌concerns, the agreement is seen as a major ‍achievement for both⁢ the⁤ EU and Mercosur, opening up new opportunities ⁤for businesses and ⁣consumers on both sides.The next step involves ratification by the parliaments of all EU member states and Mercosur countries, a process that coudl take several years.

The European Union⁣ and ​Mercosur have signed the long-awaited free trade agreement in Asunción, Paraguay, despite the notable⁢ absence of Brazilian President⁣ Luiz Inácio Lula da Silva. The agreement,reached after decades of negotiations,aims to create one of the world’s largest free trade⁣ areas,encompassing over 775 million people.

The signing ceremony was ‍attended by representatives from the EU and the other Mercosur member states: Argentina, Paraguay, and Uruguay.Lula’s absence is seen⁢ as a signal of the challenges that lie ahead in securing the agreement’s ratification, as Brazil is the largest economy in Mercosur and a key player in ⁢the region.

The agreement eliminates ⁢or reduces ⁣tariffs⁤ on a wide‍ range of goods, including agricultural products, industrial goods, and services. It ⁣also includes provisions​ on lasting development,labor rights,and⁤ public procurement. Though, the deal has faced criticism from environmental groups and some sectors of ​civil⁣ society, ⁣who fear that it could lead to increased⁤ deforestation‍ and exploitation of natural ‍resources.

The EU and⁢ Mercosur have‍ been‍ negotiating ‌the agreement for over 20 years, with talks repeatedly stalling due to disagreements over issues such‍ as agricultural access and environmental ‍standards. The final agreement represents a compromise between the two sides, but it remains to be ‍seen weather it ‍will be fully implemented and whether it will deliver⁢ the expected economic benefits.

The agreement now needs‌ to be⁣ ratified by the ⁤parliaments of all the⁤ EU ⁢member ‌states and the Mercosur countries. This process is expected to take several ⁣years, and ‌it ‌could be subject to ​political challenges and opposition from various interest groups.

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