EU sign controversial trade deal in Paraguay after 25 years of dialogue

(MENAFN) The European Union and the South American Mercosur bloc formally signed a long-awaited trade agreement on Saturday in Paraguay, ending 25 years of negotiations. The Mercosur bloc includes Argentina, Brazil, Paraguay, and Uruguay.

European Commission President Ursula von der Leyen and European Council President Antonio Costa attended the signing ceremony. Addressing the officials, von der Leyen described the agreement as “the symbol of a new partnership between Mercosur and Europe,” highlighting its significance after decades of discussions and government changes.

“This agreement sends a very strong message to the world. It reflects a clear and deliberate choice. We choose fair trade over tariffs. We choose a productive, long-term partnership over isolation, and above all, we intend to deliver real and tangible benefits to our people and our businesses,” von der Leyen said.

The agreement, approved by EU member states last Friday, faced delays in December due to opposition from farmers and several European countries, including France, Ireland, Hungary, and Poland.

Under the deal, Mercosur nations will benefit from reduced tariffs on key agricultural products such as beef, poultry, dairy, sugar, and ethanol, while European industries will gain expanded access to South American markets, creating what officials describe as the world’s largest free trade zone.

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