Dialogos

Celebrations in Brussels over EU-Mercosur Agreement

Published January 11, 2026, 06:01
Celebrations in Brussels over EU-Mercosur Agreement

The approval of the EU-Mercosur trade agreement has sparked celebrations in Brussels, with European Commission President Ursula von der Leyen describing it as the largest free trade zone in the world, covering more than 700 million consumers. It is estimated that around 60,000 European businesses will benefit from the reduction in tariffs, saving approximately 4 billion euros annually. Most member states, including Cyprus, voted in favor of the agreement, while France, Poland, Austria, Ireland, and Hungary voted against it, and Belgium abstained. The approval allows Ursula von der Leyen to travel to Paraguay for the official signing and the immediate implementation of trade commitments through an “Interim Trade Agreement” before full ratification. Energy Minister Michalis Damianou expressed the support of the Cypriot Presidency of the Council of the EU, describing the agreement as a “historic step” that strengthens the strategic relationship between the EU and Mercosur and creates new opportunities for businesses, ensuring a “fair and sustainable trade framework.” The agreement is expected to have significant economic impacts, but also to provoke further discussions about its environmental and social consequences.