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EU-Mercosur: Historic Trade Agreement Signed

Published January 17, 2026, 20:17

The European Union and Mercosur have signed a historic free trade agreement in Asunción, Paraguay, after more than 25 years of negotiations. The agreement, expected to create one of the world's largest trade zones with approximately 700 million consumers, was signed by the President of the European Commission, Ursula von der Leyen, and the President of the European Council, Antonio Costa. Antonio Costa described the agreement as particularly important for the current situation, while Ursula von der Leyen emphasized that it is more than just a trade agreement, as it signifies the EU's support for opening markets, cooperation, and mutual economic benefit, with a focus on sustainability. Estimates suggest that EU exports to Mercosur could increase by up to 50 billion euros, while exports from Mercosur countries could increase by up to 9 billion euros. The agreement is expected to create new jobs and boost competition. The agreement includes legally binding commitments to achieve climate neutrality by 2050 and is considered a geopolitical commitment between the two regions, based on shared values and rules. Von der Leyen assured that the agreement is beneficial for all EU member states, while also protecting sensitive agricultural sectors and geographical indications.