News|International TradeEU, Mercosur bloc sign free trade deal after 25 years of negotiationsEuropean and South American leaders say pact sends ‘clear signal’ amid concerns over global tariffs, isolationism.
European and South American officials have signed a significant free trade agreement, establishing the European Union's largest trade accord. The agreement was finalized on Saturday, Jan 17, 2026, between the 27-nation EU and South America's Mercosur…
European and South American officials have signed a significant free trade agreement, establishing the European Union's largest trade accord. The agreement was finalized on Saturday, Jan 17, 2026, between the 27-nation EU and South America's Mercosur bloc, culminating 25 years of negotiations.
The accord aims to lower tariffs and enhance trade between the two regions. It now awaits approval from the European Parliament and ratification by the legislatures of Mercosur members, which include Argentina, Brazil, Paraguay, and Uruguay.
The treaty is set to eliminate tariffs on more than 90% of bilateral trade, with expectations for implementation by the end of 2026. It will benefit European exports such as cars, wine, and cheese, while facilitating the entry of South American beef, poultry, sugar, rice, honey, and soybeans into Europe.
European and South American officials have signed a significant free trade agreement, establishing the European Union's largest trade accord.
The EU and Mercosur together represent 30% of global GDP and over 700 million consumers. The agreement is anticipated to generate jobs and opportunities for both regions.
Despite approval from most European nations, the agreement faces opposition from farmers and environmental groups concerned about increased imports and deforestation. Thousands of Irish farmers have protested, citing potential adverse effects on their interests.
This agreement conveys a geopolitical message of support for multilateralism amid global tensions and protectionist trends.
Based on reporting by Al Jazeera.