- News
The European Union and the Mercosur bloc of South American countries have formally signed a long-sought landmark free trade agreement
Via AP news wire Saturday 17 January 2026 17:03 GMT- Bookmark
Bookmark popover
Removed from bookmarks
Close popover
Paraguay Mercosur EU Free Trade (Copyright 2026 The Associated Press. All rights reserved)
For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails
Sign up to our free breaking news emails
Sign up to our free breaking news emails
Email*SIGN UPI would like to be emailed about offers, events and updates from The Independent. Read our Privacy notice
The European Union and the Mercosur bloc of South American countries formally signed a long-sought landmark free trade agreement on Saturday, capping over a quarter-century of torturous negotiations to strengthen commercial ties in the face of rising protectionism and trade tensions around the world.
The signing ceremony in Paraguay’s humid capital of Asunción marks a major geopolitical victory for the EU in an age of American tariffs and surging Chinese exports, expanding the bloc’s foothold in a resource-rich region increasingly contested by Washington and Beijing.
It also sends a message that South America cultivates diverse trade and diplomatic relations even as U.S. President Donald Trump declares dominance in the Western Hemisphere.