EU, Mercosur bloc sign free trade deal after 25 years of negotiations

Al JazeeraCenterEN 2 min read 100% complete by Al Jazeera StaffJanuary 17, 2026 at 08:59 PM

AI Summary

short article 2 min

After 25 years of negotiations, the European Union and the Mercosur bloc (Argentina, Brazil, Paraguay, and Uruguay) signed a major free trade agreement on January 17, 2026, in Asuncion, Paraguay. The agreement aims to lower tariffs and increase trade between the two regions, creating one of the world’s largest free trade areas. EU leaders state the deal signals a commitment to fair trade amidst global tariff concerns and isolationism. The agreement received approval from most EU nations but faces opposition from farmers and environmental groups concerned about increased imports and deforestation. The deal must now be approved by the European Parliament and ratified by the legislatures of the Mercosur member states.

Key Entities & Roles

Key Player Opposition Context

European Parliament 60% Brazil 60% Uruguay 60% Santiago Pena 60% Mauro Vieira 60% Argentina 60% Ursula Von der Leyen 70% Paraguay ×370% Mercosur ×585% European Union ×490%

Keywords

free trade agreement 100% eu 90% mercosur 90% tariffs 70% international trade 60% trade deal 60% isolationism 50% protectionism 50% global cooperation 50% european parliament 40%