The European Union and Mercosur sign a trade agreement after 25 years of negotiations

Senior officials of the European Union and the South American bloc, Mercosur, signed a free trade agreement today, Saturday, in Paraguay, paving the way for the largest European Union trade agreement ever after negotiations that spanned 25 years. The agreement, which aims to reduce customs duties and boost trade between the two continents, must now be approved by the European Parliament. ⁠It must also be ratified by the legislative bodies of the Mercosur member states, namely Argentina, Brazil, Paraguay and Uruguay.

The President of the European Commission, Ursula von der Leyen, and the President of the European Council, Antonio Costa, joined the heads of state of Mercosur to today’s ceremony. Brazilian President Luiz Inacio Lula da Silva, who sent the country’s Foreign Minister, did not attend.

The agreement was signed after receiving the green light from most European countries last week, despite the concerns of farmers and environmentally friendly groups who fear an increase in cheap South American imports and an increase in the pace of deforestation.

The value of trade between the two blocs, which includes a market of 700 million people, reached 111 billion euros in 2024. The European Union mainly exports machinery, chemical products and transport equipment, while most Mercosur exports are agricultural goods, metals, wood pulp and paper.