EU Inks South America Trade Deal After 25 Years of Negotiations

The President of the European Council Antonio Costa, left, European Commission President Ursula von der Leyen, center, and Paraguay's President Santiago Pena at the signing ceremony of the trade agreement between the European Union and Mercosur in Asuncion, Paraguay on Jan. 17. — The President of the European Council Antonio Costa, left, European Commission President Ursula von der Leyen, center, and Paraguay's President Santiago Pena at the signing ceremony of the trade agreement between the European Union and Mercosur in Asuncion, Paraguay on Jan. 17.
Photographer: Luis Robayo/AFP/Getty Images

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By Daniel Carvalho and Beatriz Reis

January 17, 2026 at 5:00 PM UTC

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The European Union and Mercosur officially signed one of the world’s largest free trade agreements on Saturday, clinching a deal that has been in the works for more than two decades.