After more than 25 years of negotiations, the European Union and the South American bloc Mercosur have finally signed this sweeping trade agreement. The deal was formalized on Saturday in Paraguay, marking a major moment for relations between the two regions.
If fully approved, the agreement will lower tariffs and expand trade across a market of about 700 million people. It still needs approval from the European Parliament and ratification by the national legislatures of Argentina, Brazil, Paraguay and Uruguay before it can take effect.
European Commission President Ursula von der Leyen called the pact the largest free trade zone ever created, saying it sends a strong signal at a time of rising global tensions. She described it as a choice for cooperation and long term partnership rather than protectionism.
The deal has not been without controversy. European farmers and environmental groups have warned it could lead to cheaper agricultural imports and increased deforestation in South America. Supporters argue it will strengthen economic security and give both sides more options in an uncertain global economy.
Trade between the EU and Mercosur already reached 111 billion euros in 2024, with Europe exporting machinery and chemicals while Mercosur ships agricultural goods and raw materials. Backers of the agreement say it could significantly deepen those ties and open new doors for investment on both sides of the Atlantic...