EU and Mercosur sign free trade deal after 25 years

After 25 years, the successful signing of one of the largest free trade agreements worldwide with 700+ million people and $22 trillion in economic output. The EU expects a 39% increase in annual exports to Mercosur countries. Tariff reductions for goods and services. Particularly important: access to critical raw materials (lithium, copper) for electric mobility and renewable energies. Car imports: tariff reduced from 35%. A signal against Trump's tariff policy. Ratification by the European Parliament required, national parliaments not needed.

Signing in Asunción on 17 January 2026. Negotiations began in 1999. The EU Commission concluded the negotiations despite criticism (France) in December 2024. Criticism: European farmers vs. competitive South American farmers; environmentalists fear increased rainforest deforestation and loss of species. Safeguard clauses built in for a strong rise in imports/price collapse. Trump had shortly beforehand announced new tariffs against Germany (10% from 1 February, 25% from 1 June over the Greenland conflict).