EU and Mercosur sign landmark free trade agreement

The EU and Mercosur signed a long‑awaited free trade agreement in Asunción after more than 25 years of negotiations. The pact removes over 90% of tariffs on goods and services but still needs ratification by the European Parliament.

The European Union and the Mercosur bloc formally signed a long-sought free trade agreement in Asunción, Paraguay, on Saturday. The deal caps more than 25 years of negotiations and aims to strengthen commercial ties amid rising protectionist pressures worldwide. EU leaders described the agreement as geopolitically important and part of a push to deepen economic relations with South America. The accord covers a market of more than 700 million people and represents about a quarter of global GDP. Key points: - The agreement was signed in Asunción after decades of negotiations. - It eliminates more than 90% of tariffs between the EU and Mercosur, with some tariffs phased out over 10–15 years. - Key agricultural products such as beef are subject to strict quotas, alongside safeguard measures and subsidies intended to address farming sector concerns. - Italy signaled support after commitments on quotas and subsidies, while France remains opposed. - The pact must be ratified by the European Parliament before it can take effect. Summary: The accord creates one of the world's largest free trade zones and aims to broaden market access between Europe and South America. Implementation depends on ratification by the European Parliament, and the timetable for that approval is undetermined at this time.