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EU-Mercosur Free Trade Agreement to be Signed Today

Published January 17, 2026, 09:16
EU-Mercosur Free Trade Agreement to be Signed Today

The European Union and Mercosur (Brazil, Argentina, Uruguay, and Paraguay) are set to sign a free trade agreement today, following over 25 years of negotiations. The agreement, expected to be signed in Asunción, has significant economic and political implications and has sparked reactions within the EU, particularly from the agricultural and livestock sectors. European Council President Antonio Costa estimates that over 700 million people will benefit from the agreement, strengthening the EU's economic autonomy. The agreement is considered important for diversifying the EU's trade relations in an environment of increased tensions with the United States and China. The agreement must be ratified by the European Parliament to take effect, a process expected to be contentious.