The European Union and South American bloc Mercosur have signed a long-awaited free trade agreement in Paraguay, opening the way for what would become the EU’s largest-ever trade deal.
Top officials from both blocs signed the agreement on Saturday (16 January) in Asunción, following 25 years of negotiations. The pact now requires approval from the European Parliament and ratification by the national legislatures of Argentina, Brazil, Paraguay and Uruguay.
European Commission President Ursula von der Leyen and European Council President António Costa attended the signing ceremony alongside the presidents of Mercosur member states. Brazilian President Luiz Inácio Lula da Silva did not attend, sending his foreign minister instead.
The agreement aims to lower tariffs and expand trade between the two regions, which together represent a market of around 700 million people. Trade between the EU and Mercosur reached 111 billion euros in 2024, with EU exports dominated by machinery, chemicals and transport equipment, while Mercosur exports largely consist of agricultural products, minerals, wood pulp and paper.
The deal cleared a key hurdle last week after gaining backing from most EU member states, despite opposition from some European farmers and environmental groups, who warn of increased imports of low-cost agricultural goods and a potential rise in deforestation.
Speaking after the signing, von der Leyen said the agreement would create the largest free trade zone in the world, describing it as a choice in favour of cooperation over protectionism.
Costa said the pact would help both blocs navigate growing global uncertainty while strengthening economic security.
Mercosur officials have previously raised concerns over certain regulatory aspects of the agreement. However, Lula said on Friday (15 January) that the deal would unlock new opportunities and stimulate trade and investment on both sides.
Brazil’s government said the agreement reflects efforts to diversify export markets, noting that the country is also pursuing trade talks with the United Arab Emirates, Canada and Vietnam, while expanding a tariff-preference pact with India.
Tehran had made plans to strike sites in Ukraine after Kyiv attacked an Iranian cargo ship in the Caspian Sea, a senior Iranian military adviser has s...
Wildfires near Spokane, Washington, have destroyed at least 700 buildings and forced tens of thousands of people to evacuate. The fires have been burn...
European Commission President Ursula von der Leyen has proposed strengthening the European Union’s external borders and increasing support for Moroc...
U.S. President Donald Trump says Iran has a "last chance" to sign what he described as "a good document", claiming talks are continuing at Tehran's request with backing from Saudi Arabia, the UAE and Qatar.
U.S. President Donald Trump said late on Saturday he would hold off on a fresh attack on Iran as long as a deal could be reached quickly to halt Iran's nuclear ambitions and reopen the Strait of Hormuz.
Indonesian rescue teams are searching for 28 people still unaccounted for, three days after a passenger ferry caught fire off the coast of Madura island.
Two firefighting helicopters collided while battling a major wildfire in Greece on Sunday, killing two crew members as emergency services continued efforts to contain fires fuelled by extreme heat and dry conditions across Europe.
At least eight people were killed in overnight Ukrainian drone strikes across Russia, regional officials said, as Kyiv expanded attacks on infrastructure.
Wildfires near Spokane, Washington, have destroyed at least 700 buildings and forced tens of thousands of people to evacuate. The fires have been burning for a third day around the state’s second-largest city, officials said.
European Commission President Ursula von der Leyen has proposed strengthening the European Union’s external borders and increasing support for Morocco following the arrival of around 50,000 migrants in the Spanish enclave of Ceuta last week.
Drone attacks damaged a warehouse near Russia’s St. Petersburg and struck a cargo ship near Novorossiysk, injuring three crew members, according to Russian and Turkish authorities.
Start your day informed with AnewZ Morning Brief. Here are the top news stories for the 4th of August, covering the latest developments.
South Korean President Lee Jae Myung urged authorities to increase support for people affected by a record heatwave, as the death toll reached 16.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment