EU-Mercosur Free Trade Agreement Signed After 25 Years

The European Union and the Mercosur bloc of South American nations signed a landmark free trade agreement on Saturday in Asunción, Paraguay, concluding more than 25 years of negotiations aimed at bolstering economic ties amid global trade tensions.

The pact, formalized at the Banco Central del Paraguay, establishes one of the world's largest free trade zones, covering more than 700 million consumers across the two regions. It calls for the gradual elimination of over 90 percent of tariffs on bilateral trade, facilitating easier access for European exports such as machinery, chemicals, cars, wine and cheese, while opening European markets to South American agricultural products including beef, poultry, sugar, rice, honey and soybeans. Existing trade between the EU and Mercosur reached 111 billion euros in 2024, and supporters expect the deal to deepen these exchanges and spur investment.

European Commission President Ursula von der Leyen, who led the EU delegation, described the agreement as a commitment to multilateralism. "We choose fair trade over tariffs. We choose a productive long-term partnership over isolation," she said at the ceremony. Von der Leyen emphasized its...