Dialogos

EU Approves Landmark Free Trade Agreement with Mercosur

Published January 9, 2026, 20:03
EU Approves Landmark Free Trade Agreement with Mercosur

The European Union has approved a historic free trade agreement with Mercosur (Argentina, Brazil, Paraguay, Uruguay), creating a trade zone with 700 million consumers. The agreement, which follows 25 years of negotiations, includes the removal of tariffs and the opening of new markets in sectors such as agriculture, automotive, and pharmaceuticals. The Minister of Energy, Commerce and Industry, Michalis Damianou, described the decision as a significant step towards strengthening the EU's strategic partnership with Mercosur, emphasizing the need to enhance political cooperation and sustainable development. The EMPA agreement strengthens cooperation in areas such as sustainable development, the environment, and climate action, while the Interim Trade Agreement (iTA) will be in effect provisionally until the full implementation of the EMPA. The agreement does not require ratification by member states, as it falls under the exclusive competence of the EU.