European Union and Mercosur Sign Landmark Free Trade Agreement After 25 Years

After more than 25 years of negotiations, the European Union and the Mercosur bloc of South American nations signed a landmark free trade agreement on January 17, 2026, in Asuncion, Paraguay. The deal aims to remove tariffs on over 90% of goods traded, expanding market access for agricultural exports from South America and industrial goods from Europe. It reflects efforts to strengthen economic ties amid rising global protectionism and trade tensions, though it still requires ratification by the EU parliament. Bolivia may join later, while Venezuela remains excluded.