EU and Mercosur sign free trade agreement after 25 years
The European Union and Mercosur have signed their long-delayed free trade agreement, creating one of the world’s largest free trade zones. The deal, more than 25 years in the making, was signed in Asuncion, Paraguay, on Saturday.
The agreements sees tariffs eliminated on more than 90 per cent of bilateral trade between the EU and Mercosur. The two blocs account for about 20 per cent of global GDP and more than 700 million consumers.
“We choose fair trade over tariffs, we chose a productive long-term partnership over isolation,” European Commission president Ursula von der Leyen said at the ceremony.
The Mercosur bloc is composed of Argentina, Brazil, Paraguay, Uruguay and Bolivia. Bolivia is not currently included in the deal, as it only became a member in 2024 and was not involved in negotiations. It will be able to join in the coming years as its integration in the bloc continues.
Von der Leyen and European Council president Antonio Costa were present at the signing, alongside Argentina’s Javier Milei, Uruguay’s Yamandu Orsi and Paraguay’s Santiago Pena. Brazilian president Luiz Inacio Lula da Silva did not attend.
The deal was eventually passed by a qualified majority of EU member states on 9 January. Austria, France, Hungary, Ireland and Poland all voted against, while a lack of agreement between the regions meant Belgium was forced to abstain.
"We choose fair trade over tariffs, we chose a productive long-term partnership over isolation"
On 21 January, MEPs will vote on whether to refer the agreement to the Court of Justice of the European Union to verify its compatibility with European treaties. The item has been placed on the provisional agenda for the next plenary session by the Conference of Presidents of the European Parliament.
Belgian farmers protested against the deal at Brussels Airport’s freight terminal overnight, with further protests expected at the European Parliament in Strasbourg on Tuesday. They fear unfair competition from overseas farmers and lower food standards as a result.
EU and Mercosur leaders at the official signing of the free trade agreement in Asuncion, Paraguay, 17 January 2026 © PHOTO LUIS ROBAYO / AFP / Farmers protest at Brussels Airport's freight terminal © BELGA VIDEO JONAS ROOSENS
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