(VOVWORLD) - The European Union and the South American trade bloc Mercosur signed a trade agreement on Saturday in Paraguay after 25 years of negotiations, marking a historic milestone in relations between the two regions.
 Authorities of the EU and the South American bloc Mercosur pose during the signing ceremony of a free trade agreement in Asuncion, Paraguay, January 17, 2026. (Photo: Reuteurs/Cesar Olmedo) |
European Commission President Ursula von der Leyen and European Council President Antonio Costa attended the signing ceremony alongside the Presidents of Argentina, Brazil, Paraguay, and Uruguay. Brazilian President Luiz Inácio Lula da Silva was represented by his foreign minister.
Von der Leyen said that at a time of global uncertainty and growing fragmentation, the agreements demonstrate the EU and Mercosur’s shared commitment to strengthening cooperation, multilateralism, and a rules-based international order.
The EU-Mercosur trade deal is set to create one of the world’s largest trade zones, covering a market of around 700 million consumers.
The agreement is expected to generate significant new commercial opportunities for businesses across the EU, boosting annual exports to Mercosur by an estimated 39%, or approximately 49 billion euros, while supporting hundreds of thousands of jobs in Europe.