EU and Mercosur Sign Landmark Trade Deal After 25-Year Negotiation

After nearly 25 years of intermittent negotiations, the European Union and Mercosur nations have signed a comprehensive free trade agreement. The pact establishes a unified market spanning 780 million consumers and eliminates tariffs on over 90% of goods exchanged between the economic blocs.

The signing ceremony in Paraguay's capital featured European Commission President Ursula von der Leyen alongside Mercosur leaders. Von der Leyen framed the agreement as a "geopolitical victory" that would generate "exports, growth and jobs" for both regions. Notably absent was Brazilian President Lula da Silva, whose absence reportedly reflected frustration over delays in finalizing the deal during Brazil's Mercosur presidency.

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Key provisions include:

• Immediate tariff elimination on EU industrial products like cars, machinery, and chemicals
• Gradual reduction (10-15 years) on South American agricultural exports including beef, ethanol, and sugar
• Protected geographical indications for European products like Parmesan cheese and Rioja wine

EU Trade Commissioner Maros Sefcovic emphasized the agreement's broader significance: "We're sending a clear message that Mercosur and EU countries stand for smooth trade that benefits consumers through better quality and prices."

The deal faces substantial opposition, particularly from European farmers concerned about competition from South American agricultural imports. Environmental groups also warn it could accelerate deforestation in ecologically sensitive regions like the Amazon. The agreement now enters a complex ratification phase requiring approval from the European Parliament and all national legislatures of Mercosur members Argentina, Brazil, Paraguay and Uruguay.