MERCOSUR and the European Union clinch historic deal reshaping transatlantic trade  

Asunción, January 17, 2026 -The MERCOSUR countries —Argentina, Brazil, Paraguay and Uruguay— signed on Friday an Association Agreement and an Interim Trade Agreement with the European Union, marking a milestone in economic, political and cooperation ties between the two blocs.

The agreements were signed by the foreign ministers of the MERCOSUR member states and by the European Commissioner for Trade and Economic Security, in a ceremony attended by top officials from both regions as honorary witnesses.

The accords establish a comprehensive and balanced framework aimed at boosting trade in goods and services, encouraging investment and promoting long-term economic development.

For MERCOSUR, the deal grants preferential access to the European Union, the world’s third-largest economy, with a market of 450 million consumers and nearly 15% of global GDP. Under the agreement, the EU will eliminate tariffs on 92% of MERCOSUR exports, valued at approximately US$61 billion. In addition, preferential access will be granted to a further 7.5% of exports, equivalent to around US$4.7 billion, effectively covering almost all MERCOSUR exports to the European market.

The agreement significantly expands the bloc’s access to Europe, improves trade conditions and strengthens the competitiveness of companies across the region.
It also establishes cooperation mechanisms in strategic areas, aimed at supporting economic growth and social development in the member countries.

With the signing, MERCOSUR countries reaffirm their commitment to regional integration, development and international cooperation, consolidating a long-term strategic partnership expected to deliver tangible benefits for citizens, businesses and the broader economy of both regions.