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EU and Mercosur Sign Historic Trade Agreement After 25-Year Negotiation

KVIA•Saturday, January 17, 2026 at 6:06 PM•CNN Newsource

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After 25 years of negotiations, the European Union (EU) and Mercosur, which includes Brazil, Argentina, Paraguay, and Uruguay, have finalized a significant trade agreement. This pact, set to be signed on Saturday, will create a market of 700 million people and aims to reduce tariffs on 91% of exports between the two regions. The agreement is crucial as it marks a strategic move by the EU to enhance economic cooperation and counteract the protectionist policies of former U.S. President Donald Trump while competing with China for influence in Latin America. Key industries such as agriculture and mining will see significant changes, with Mercosur gaining increased export quotas for agricultural products and the EU securing better access for vehicles and machinery. The deal also emphasizes sustainable development and includes provisions for environmental compliance.

Key Details: • The agreement will be signed on Saturday, marking a historic milestone. • It reduces tariffs on 91% of exports, affecting various sectors including agriculture and mining. • Mercosur countries will benefit from increased export quotas to the EU market. • The deal includes measures for environmental compliance linked to the Paris Agreement. • The agreement reflects a shift in EU strategy towards Latin America amid competition with China.

latin-america trade-agreement mercosur european-union economic-cooperation

People & Organizations

European UnionUrsula von der LeyenBrazilArgentinaUruguayMercosurEuropeBenjamín GedanParaguay

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