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

The European Union and the Mercosur bloc of South American countries signed a landmark free trade agreement on January 17 in Asuncion, Paraguay, concluding over 25 years of negotiations. The deal aims to reduce tariffs and boost trade between the regions, creating one of the world's largest free trade zones covering over 700 million people and 30% of global GDP. While hailed as a geopolitical success for the EU amid global trade tensions, the agreement faces scrutiny from European farmers and environmental groups concerned about imports and deforestation. The pact requires ratification by the European Parliament and Mercosur legislatures before implementation.