European Union and Mercosur bloc of South American nations sign landmark free trade agreement

Associated Press (AP)CenterEN 4 min read 100% complete by By NAYARA BATSCHKE and ISABEL DEBREJanuary 17, 2026 at 11:23 PM

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On Saturday, January 17, 2026, the European Union and the Mercosur bloc of South American nations signed a landmark free trade agreement in Asuncion, Paraguay. The agreement concludes over a quarter-century of negotiations aimed at strengthening commercial ties between the two regions. Leaders from both the EU and Mercosur countries, including presidents and high-ranking officials, attended the signing ceremony. The deal intends to counter rising protectionism and trade tensions globally. The agreement is expected to boost economic cooperation and trade between the European Union and the South American nations within the Mercosur bloc.

Key Entities & Roles

Key Player Opposition Context

Bolivia ×240% Panama 40% Jose Raul Mulino 50% Javier Milei 50% Antonio Costa 50% Ursula von der Leyen 50% Yamandu Orsi 50% Santiago Pena ×260% Rodrigo Paz ×360% Mauro Vieira ×270% European Union ×790% Mercosur ×790%

Keywords

free trade agreement 100% european union 90% mercosur 90% trade tensions 70% protectionism 70% commercial ties 60% south american nations 50% economic security 40%