EU and Mercosur Sign Long-Awaited Trade Agreement in Paraguay
Landmark deal concludes decades of negotiations
ISTANBUL — The European Union and the South American Mercosur bloc signed a long-negotiated trade agreement on Saturday in Paraguay, marking the conclusion of more than 25 years of discussions.
European Commission President Ursula von der Leyen and European Council President Antonio Costa attended the signing ceremony alongside leaders from the Mercosur countries — Argentina, Brazil, Paraguay, and Uruguay.
Leaders highlight global trade message
Speaking at the ceremony, von der Leyen described the agreement as a symbol of renewed cooperation between Europe and South America. She noted that the deal endured years of political change and repeated negotiations.
According to her, the agreement will establish the world’s largest free trade area, linking two major economic regions through shared trade rules and market access.
“This agreement sends a strong message to the world,” von der Leyen said. “We choose fair trade over tariffs and long-term cooperation over isolation. Above all, this partnership aims to deliver real benefits to citizens and businesses on both sides.”
Approval follows political debate
The agreement received approval from EU member states last Friday. However, the final decision came after delays caused by farmer protests and opposition from several countries, including France, Ireland, Hungary, and Poland.
Despite these concerns, EU leaders moved forward, citing the economic and strategic importance of closer ties with South America.
Trade benefits for both regions
Under the agreement, Mercosur countries will receive reduced tariffs on key agricultural exports such as beef, poultry, dairy products, sugar, and ethanol. In return, European industries will gain broader access to South American markets, particularly in manufacturing and services.
Officials from both sides expect the deal to boost trade volumes, strengthen supply chains, and support long-term economic growth.
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