EU reaches South America trade deal after 25 years of talks

BBC News - WorldCenterEN 3 min read 100% complete January 9, 2026 at 08:35 PM

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After 25 years of negotiations, the EU and the Mercosur bloc (Brazil, Argentina, Paraguay, and Uruguay) have reached a free trade agreement. The deal, finalized in Brussels, aims to boost trade and political ties between the two regions. While proponents, including the EU Commission President and Brazil's President, tout the agreement's economic benefits and signal against protectionism, it still requires approval from the European Parliament. The EU anticipates €4 billion in annual savings for its companies. Concerns have been raised by European farmers, who fear being undercut by cheaper imports, leading to protests. The EU Commission claims to have addressed these concerns with safeguards. The agreement also includes commitments to combat climate change and ensure access to raw materials for the green transition.

Key Entities & Roles

Key Player Opposition Context

France 40% Venezuela 40% Belgium ×250% Donald Trump 50% Ursula von der Leyen ×260% Luiz Inacio Lula da Silva ×270% Brazil 70% Argentina 70% Paraguay 70% Uruguay 70% Mercosur ×280% European Union ×690%

Keywords

free trade agreement 100% eu 90% mercosur 90% trade 80% farmers 70% protectionism 60% climate change 50% economic growth 50% export duties 40% raw materials 40%