Cyprus Times

EU and Mercosur to Sign Landmark Free Trade Agreement

Published January 17, 2026, 08:11
EU and Mercosur to Sign Landmark Free Trade Agreement

The European Union and Mercosur are set to sign a historic free trade agreement after more than 25 years of negotiations. The agreement, to be signed in Asunción, Paraguay, aims to benefit over 700 million people and strengthen trade relations between the two blocs. The EU is seeking to diversify its trade relationships amid tensions with the US and China, while Mercosur aims to expand its access to the European market. The agreement has faced opposition from European farmers and ranchers, but the EU overcame disagreements to reach a deal. The agreement now needs to be ratified by the European Parliament before it can come into force.