The EU and South America’s Mercosur bloc sign a landmark trade deal, eliminating over 90% of tariffs and promoting rules-based trade over protectionism.
ASUNCION: EU chief Ursula von der Leyen hailed the choice of “fair trade over tariffs” as the European Union signed a landmark trade deal with South America’s Mercosur bloc.
The agreement, 25 years in the making, was finalised at a ceremony in Paraguay’s capital.
“We choose fair trade over tariffs, we chose a productive long-term partnership over isolation,” Von der Leyen said.
Paraguay’s President Santiago Pena praised the treaty as “a clear signal in favour of international trade”.
He said it came amid a global scenario marked by tensions.
European Council head Antonio Costa said the deal sent a message defending rules-based free trade and multilateralism.
He contrasted it with “the use of trade as a geopolitical weapon”.
The pact’s signing follows widespread use of tariffs and trade threats by the US administration.
This has prompted many nations to seek new economic partnerships.
Together, the EU and Mercosur represent 30% of global GDP and over 700 million consumers.
The deal eliminates tariffs on more than 90% of bilateral trade.
The treaty still requires approval by the European Parliament.
It must also be ratified by each Mercosur nation before coming into force, which is expected by the end of 2026.
