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EU and Mercosur Reach Historic Trade Agreement

Published January 9, 2026, 19:08
EU and Mercosur Reach Historic Trade Agreement

The European Union Council has approved the signing of the EU-Mercosur Partnership Agreement and the Interim Trade Agreement, marking a historic step in EU-Mercosur relations after 25 years of negotiations. The agreement creates a free trade zone covering over 700 million consumers, with trade between the two sides reaching €111 billion in 2024 and trade in services exceeding €42 billion in 2023. Minister of Energy, Commerce and Industry, Michalis Damianou, emphasized the importance of the agreement for strengthening the strategic partnership and addressing global uncertainty. He highlighted that the agreement will create new opportunities for businesses and ensure sustainable development. The Partnership Agreement (EMPA) includes political dialogue, cooperation, and trade pillars, enhancing collaboration in areas such as sustainability, the environment, digital transformation, and human rights. Platforms for exchanging expertise and best practices will be established. The Interim Trade Agreement (iTA) will be in effect until the full implementation of the EMPA and provides for tariff reductions and market opening in sectors such as agriculture, automotive, and pharmaceuticals. It also facilitates investment and trade in services, particularly in the digital and financial sectors, and gives European businesses access to public tenders in Mercosur.