{"id":703374,"date":"2026-01-18T02:56:15","date_gmt":"2026-01-18T02:56:15","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/703374\/"},"modified":"2026-01-18T02:56:15","modified_gmt":"2026-01-18T02:56:15","slug":"european-union-and-mercosur-bloc-of-south-american-nations-sign-landmark-free-trade-agreement","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/703374\/","title":{"rendered":"European Union and Mercosur bloc of South American nations sign landmark free trade agreement"},"content":{"rendered":"

ASUNCION, Paraguay (AP) \u2014 The European Union and the Mercosur bloc of South American countries formally signed a long-sought free trade agreement<\/a> on Saturday, strengthening commercial ties in the face of rising protectionism and trade tensions around the world.<\/p>\n

The signing ceremony in Paraguay\u2019s capital, Asuncion, caps more than a quarter-century of torturous negotiations. It marks a major geopolitical victory for the EU in an age of American tariffs and surging Chinese exports, expanding the bloc\u2019s foothold in a resource-rich region increasingly contested<\/a> by Washington and Beijing. <\/p>\n

It also sends a message that South America is keeping a range of trade and diplomatic relationships even as U.S. President Donald Trump makes an aggressive push<\/a> for geopolitical dominance of the Western Hemisphere<\/a>.<\/p>\n

The agreement could still face hurdles in the EU parliament, which must ratify it before it can take effect. Ratification is considered all but guaranteed in South America, where the agreement has broad support.<\/p>\n

Mercosur consists of the region\u2019s two biggest economies, Argentina and Brazil, as well as Paraguay and Uruguay. Bolivia, the bloc\u2019s newest member, is not included the trade deal but could join in the coming years. Venezuela has been suspended from the bloc and isn\u2019t included in the agreement. <\/p>\n

Supported by South America\u2019s cattle-raising countries and European industrial interests, the accord will gradually eliminate more than 90% of tariffs on goods ranging from Argentine beef to German cars, creating one of the world\u2019s largest free trade zones and making shopping cheaper for more than 700 million consumers. <\/p>\n

Leaders call deal a win over protectionism<\/p>\n

European Commission President Ursula von der Leyen, who heads the EU\u2019s executive branch, portrayed the deal as a bulwark against the disruptive policies of the Trump administration.<\/p>\n

\u201cIt reflects a clear and deliberate choice: We choose fair trade over tariffs. We choose a productive long-term partnership over isolation,\u201d von der Leyen declared in an veiled rebuke of Trump at the ceremony, which got underway as Trump announced 10% tariffs<\/a> on eight European nations over their opposition to American control of Greenland.<\/p>\n

\u201cWe will join forces like never before, because we believe that this is the best way to make our people and our countries prosper,\u201d she added.<\/p>\n

The White House did not immediately respond to a request for comment.<\/p>\n

Brazilian President Luiz In\u00e1cio Lula da Silva, a longtime advocate of the trade deal, hailed it as a victory for global cooperation.<\/p>\n

\u201cAt a time when unilateralism isolates markets and protectionism inhibits global growth, two regions that share democratic values and a commitment to multilateralism choose a different path,\u201d Lula posted on X.<\/p>\n

Final push for deal came after EU demanded more concessions for farmers<\/p>\n

But Lula skipped the signing ceremony<\/a>, signaling simmering tensions between the trading blocs.<\/p>\n

Brazil, which held the rotating presidency of Mercosur last year, was gearing up to host the signing ceremony last month when European countries called it off<\/a>, demanding more concessions for farmers<\/a> scared of a surge in cheap agricultural imports. <\/p>\n

Robbed of the spotlight, Lula was outraged at what was widely seen in South America as the latest example of the EU\u2019s overbearing demands<\/a>.<\/p>\n

One of the main reasons the deal took so long to clinch was Brussels\u2019 demands for controls on South American agricultural processes, from deforestation regulation<\/a> to rules on plastic packaging, as European farmers complained they couldn\u2019t compete if their South American counterparts were held to lower standards.<\/p>\n

\u201cThe EU\u2019s maximalist wish lists of demands from developing economies willing to sign free trade agreements are often perceived as patronizing,\u201d said Agathe Demarais, a senior policy fellow with the European Council on Foreign Relations.<\/p>\n

Some European farmers hope to block ratification<\/p>\n

After the accord incorporated environmental regulations, strict quotas on farm imports like beef and sugar and staggered timelines for tariff reductions, the EU sweetened the deal further for its farmers with a promise of hefty subsidies. That pushed agricultural powerhouse Italy across the line<\/a> earlier this month.<\/p>\n

But even as the ink dried on Saturday, powerful lobbies in Europe were still hoping to prevent the agreement from clearing its main final hurdle: ratification by the European Parliament.<\/p>\n

France remains opposed<\/a> to the accord, with President Emmanuel Macron worrying that farmers\u2019 frustration with the EU could drive more voters to the country\u2019s far right<\/a> in the 2027 presidential election.<\/p>\n

In an interview, EU trade commissioner Maro\u0161 \u0160ef\u010dovi\u010d said he\u2019d start lobbying Monday to get European Parliament members on board with the deal in hopes of seeing it passed in the first half of this year.<\/p>\n

\u201cWe\u2019ll have very intense communication with all the members on a group level, on an individual level,\u201d \u0160ef\u010dovi\u010d told The Associated Press, expressing confidence that \u201ceveryone will do the procedures as quickly as possible so we can benefit from this historic achievement.\u201d<\/p>\n

\u0160ef\u010dovi\u010d didn\u2019t name Trump, but as the U.S. threatens higher tariffs the commissioner said the accord sent the message \u201cthat if someone prefers and believes in high tariffs and power politics, Mercosur and European countries representing more than 700 million people clearly believe in … international law, predictability, certainty and the removing of trade barriers.\u201d<\/p>\n

A revived Mercosur wins over skeptical Milei<\/p>\n

The deal is a sign of the bloc\u2019s revived relevance after years in which it was embroiled in political spats, undermined by economic crises and constrained by protectionist governments.<\/p>\n

Perhaps most striking is the enthusaism of Argentine President Javier Milei, a radical libertarian and admirer<\/a> of Trump who shares the U.S. leader\u2019s contempt<\/a> for global institutions like the United Nations. Milei came to office in late 2023 with nothing but scorn for Mercosur, trashing it as a \u201cprison,\u201d threatening to withdraw and skipping the 2024 summit<\/a>.<\/p>\n

But his enthusiasm for free trade overcame any skepticism of the bloc at Saturday\u2019s ceremony.<\/p>\n

\u201cArgentina understands firsthand that closure and protectionism, sheltered by rhetoric rather than results, are the greatest causes of economic stagnation,\u201d he said before signing.<\/p>\n

___<\/p>\n

DeBre reported from Buenos Aires, Argentina. <\/p>\n","protected":false},"excerpt":{"rendered":"ASUNCION, Paraguay (AP) \u2014 The European Union and the Mercosur bloc of South American countries formally signed a…\n","protected":false},"author":2,"featured_media":703375,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5174],"tags":[186752,3971,12019,211365,51,32,5211,34,2000,299,5187,1699,4179,5212,8614,3058,12808,3274,121964,1216,22709,285,22713,5214,5213,1220,263],"class_list":{"0":"post-703374","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-eu","8":"tag-agathe-demarais","9":"tag-agriculture","10":"tag-ap-top-news","11":"tag-asuncion","12":"tag-business","13":"tag-donald-trump","14":"tag-economic-policy","15":"tag-emmanuel-macron","16":"tag-eu","17":"tag-europe","18":"tag-european","19":"tag-european-union","20":"tag-general-news","21":"tag-government-policy","22":"tag-international-agreements","23":"tag-international-trade","24":"tag-javier-milei","25":"tag-latin-america","26":"tag-luiz-incio-lula-da-silva","27":"tag-maros-sefcovic","28":"tag-paraguay","29":"tag-politics","30":"tag-south-america","31":"tag-tariffs-and-global-trade","32":"tag-united-states-government","33":"tag-ursula-von-der-leyen","34":"tag-world-news"},"share_on_mastodon":{"url":"","error":"Validation failed: Text character limit of 500 exceeded"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/703374","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=703374"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/703374\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/703375"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=703374"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=703374"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=703374"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}