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.
Greek Prime Minister Kyriakos Mitsotakis arrived in Ankara on Wednesday, where Turkish President Recep Tayyip Erdoğan held an official welcoming cere...
Three people were injured after a gunman opened fire and held students and teachers hostage at a school in Hat Yai district in southern Thailand on We...
This week's Washington meeting between Israeli Prime Minister Netanyahu and U.S. President Trump is not routine, says geopolitical analyst Ilan Scialo...
The United States and Azerbaijan signed a new strategic partnership agreement in Baku on Tuesday, expanding cooperation on defence, energy security, a...
Uzbekistan is combining renewable energy expansion with sweeping land restoration, installing solar stations in local communities while rehabilitating...
Greek Prime Minister Kyriakos Mitsotakis arrived in Ankara on Wednesday, where Turkish President Recep Tayyip Erdoğan held an official welcoming ceremony at the Presidential Palace, marking the start of high-level talks between the two NATO allies.
Three people were injured after a gunman opened fire and held students and teachers hostage at a school in Hat Yai district in southern Thailand on Wednesday, police said.
This week's Washington meeting between Israeli Prime Minister Netanyahu and U.S. President Trump is not routine, says geopolitical analyst Ilan Scialom, calling it a “high-stakes preventive diplomatic strike” to secure Israel’s strategic priorities ahead of potential Iran talks.
Afghanistan’s humanitarian situation remained severe throughout 2025, with millions still struggling to meet basic needs, according to a new report by the International Committee of the Red Cross (ICRC).
JD Vance arrived in Armenia on Monday (9 February), becoming the first sitting U.S. Vice President to visit the country, as Yerevan and Washington agreed to cooperate in the civil nuclear sector in a bid to deepen engagement in the South Caucasus.
The United States and Azerbaijan signed a strategic partnership in Baku on Tuesday (10 February) encompassing economic and security cooperation as Washington seeks to expand its influence in a region where Russia was once the main power broker.
Buckingham Palace said it is ready to support any police investigation into allegations that Prince Andrew shared confidential British trade documents with late sex offender Jeffrey Epstein, as King Charles expressed “profound concern” over the latest revelations.
Chinese authorities have quietly signalled a shift in strategy, instructing some state-owned banks to rein in their purchases of U.S. government bonds.
U.S. military forces have seized a sanctioned oil tanker in the Indian Ocean after tracking the vessel from the Caribbean Sea, the Pentagon said on Monday.
This week's Washington meeting between Israeli Prime Minister Netanyahu and U.S. President Trump is not routine, says geopolitical analyst Ilan Scialom, calling it a “high-stakes preventive diplomatic strike” to secure Israel’s strategic priorities ahead of potential Iran talks.
Three people were injured after a gunman opened fire and held students and teachers hostage at a school in Hat Yai district in southern Thailand on Wednesday, police said.
The Philippine foreign ministry on Wednesday (11 February) called on the Chinese Embassy in Manila to adopt a “constructive” tone in its statements, amid an intensifying war of words between Chinese diplomats and Philippine officials, including senators.
Norway’s Sturla Holm Laegreid, who won bronze in the men’s biathlon at the Milano Cortina 2026 Winter Olympics on Tuesday (10 February) in Italy, stunned viewers by publicly admitting he had cheated on his girlfriend and pleaded for another chance during post-race interviews.
Kyiv is preparing to outline a simultaneous return to the ballot box and a public vote on a potential peace settlement, the Financial Times reports. It would mark a pivotal shift in the country's political landscape on the fourth anniversary of Russia's full-scale invasion of Ukraine.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment