The European Union and the Mercosur bloc finalized a free trade agreement on Saturday in Asunción, Paraguay, marking the largest deal Brussels has negotiated to date, reports Euractiv.
The signing took place at the Central Bank of Paraguay – the same venue where the Treaty of Asunción was signed in 1991, establishing Mercosur between Argentina, Brazil, Paraguay, and Uruguay. The agreement covers 700 million citizens across both regions.
European Commission President Ursula von der Leyen attended the ceremony after receiving authorization on 9 January from a majority of EU member states, despite opposition from France and Poland. The deal has been under negotiation for more than 25 years.
"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 peoples and companies," von der Leyen said at the ceremony.
She emphasized the agreement's geopolitical significance: "When two regions like ours speak with one voice on global issues, the world will be listening."
Paraguay's President Santiago Peña, Bolivia's Rodrigo Paz, Argentina's Javier Milei, and Uruguay's Yamandú Orsi represented Mercosur at the signing, alongside Panama's President José Raúl Mulino, an associated member. European Council President António Costa also attended.
Brazilian President Lula da Silva, whom von der Leyen and EU Trade Commissioner Maroš Šefčovič met on Friday, did not attend Saturday's ceremony and was represented by his foreign affairs minister.
The agreement faces resistance in Europe. According to Euractiv, farmers' protests have occurred across the continent in recent weeks, with 5,000 farmers and 1,000 tractors expected at the European Parliament in Strasbourg next week. In Ireland, thousands of farmers have already protested against the deal.
The European Parliament is preparing a fourth attempt at a no-confidence vote against von der Leyen over the trade agreement. A vote could challenge the deal at the EU's Court of Justice.
