Dialogos

Costa and Von der Leyen Sign EU-Mercosur Trade Agreement in Paraguay

Published January 18, 2026, 09:03
Costa and Von der Leyen Sign EU-Mercosur Trade Agreement in Paraguay

The European Union and Mercosur, the economic bloc comprising Argentina, Brazil, Paraguay, and Uruguay, signed a cooperation agreement (EMPA) and a temporary trade agreement (iTA) in Asunción, Paraguay, ushering in a new era in their economic and geopolitical relations. The agreement, signed by European Council President Antonio Costa and European Commission President Ursula von der Leyen, is expected to increase EU exports to Mercosur by 39%, or approximately €49 billion annually, and support hundreds of thousands of jobs in Europe. The agreement includes commitments to climate neutrality and sustainable development, while also opening up public procurement and providing a clear regulatory framework to encourage investment.