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EU and Mercosur Sign Landmark Free Trade Agreement

Published January 17, 2026, 19:11
EU and Mercosur Sign Landmark Free Trade Agreement

European Commission President Ursula von der Leyen expressed her enthusiasm for the historic free trade agreement between the European Union and Mercosur, which she described as a 'history-making event'. The agreement, signed in Asunción, Paraguay, marks the end of negotiations that lasted over 25 years and creates one of the largest trade zones in the world. Von der Leyen emphasized that the agreement will strengthen business opportunities on both sides of the Atlantic, eliminate tariffs worth billions of euros, and promote sustainability and climate neutrality by 2050. She estimated that EU exports to Mercosur will increase by 50 billion euros, while exports from Mercosur could increase by 9 billion euros. The President of the Commission assured that the agreement is beneficial for all EU member states and that safeguards have been provided to protect sensitive agricultural sectors. She also referred to the protection of 350 European geographical indications. The next step is the completion of the ratification procedures for the agreement, in order for it to enter into force.