European Council President Antonio Costa, European Commission President Ursula von der Leyen, Paraguay's President Santiago Pena and Argentina's President Javier Milei during the signing ceremonial of a escaped commercialized statement betwixt the European Union and the South American bloc Mercosur, ending much than 25 years of negotiations, successful Asuncion, Paraguay, connected Jan. 17, 2026.
Cesar Olmedo | Reuters
Top officials from the EU and the South American bloc Mercosur signed a escaped commercialized statement connected Saturday successful Paraguay, paving the mode for the European Union's largest-ever commercialized accord aft 25 years of negotiations.
The agreement, designed to little tariffs and boost commercialized betwixt the 2 regions, indispensable present summation the consent of the European Parliament and beryllium ratified by the legislatures of Mercosur members Argentina, Brazil, Paraguay and Uruguay.
European Commission President Ursula von der Leyen and European Council President Antonio Costa joined the presidents of Mercosur countries astatine Saturday's ceremony, with the objection of Brazilian President Luiz Inacio Lula da Silva, who sent his overseas minister.
European worries astir inexpensive imports
The woody received the greenish airy from astir European nations past week, contempt concerns from farmers and biology groups, who fearfulness a surge of inexpensive South American imports and accrued deforestation.
Von der Leyen, who met with Lula earlier heading to Asuncion for the signing, said the woody would make the largest escaped commercialized portion successful the world.
"This statement sends a precise beardown connection to the world. It reflects a wide and deliberate choice. We take just commercialized implicit tariffs. We take a productive, semipermanent concern implicit isolation," she said connected Saturday.
Just earlier the ceremonial connected Saturday morning, U.S. President Donald Trump vowed to enforce expanding tariffs connected 8 European nations if the United States is not permitted to acquisition Greenland.
"This statement volition assistance some our blocs navigate an progressively turbulent governmental situation without abandoning our values, marking a existent milestone successful shoring up our economical security," Costa said.
While Mercosur officials person expressed reservations astir definite regulations wrong the pact, Lula affirmed connected Friday successful Rio de Janeiro that it volition unlock greater opportunities and stimulate much commercialized and concern for some parties.
Brazil's authorities said successful a connection that the woody is "emblematic of Lula's efforts to grow and diversify markets," adding that South America's largest system is besides negotiating agreements with the United Arab Emirates, Canada and Vietnam, too the enlargement of a tariff‑preference pact with India.
Trade betwixt the EU and Mercosur, which encompasses a marketplace of 700 cardinal people, reached a worth of 111 cardinal euros successful 2024. European Union exports chiefly dwell of machinery, chemic products, and transport equipment, whereas Mercosur's exports are concentrated successful cultivation goods, minerals, wood pulp, and paper.
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