The European Union and the Mercosur on Saturday formally signed a long-awaited free trade agreement, closing more than 25 years of negotiations and creating one of the world’s largest integrated trading zones.The agreement was signed in Asunción, marking a significant geopolitical win for the EU at a time of intensifying global trade frictions, rising tariffs and expanding Chinese exports. The pact also signals South America’s intent to maintain diversified economic and diplomatic ties, even as the United States sharpens its trade posture in the Western Hemisphere.The deal brings together a combined market of over 700 million people, accounting for roughly a quarter of global gross domestic product. It aims to progressively reduce tariffs on a vast majority of goods traded between the two blocs, opening new opportunities for South American agricultural exporters and European manufacturers seeking access to fast-growing markets.Speaking at the signing ceremony, Ursula von der Leyen said the agreement carried major strategic weight at a time when free trade is increasingly under pressure.“The geopolitical importance of this agreement cannot be overstated,” von der Leyen said, adding, “We choose fair trade over tariffs. We choose a productive long-term partnership over isolation.”She said the pact reflects a shared belief that deeper cooperation is the best way to generate growth and prosperity on both sides of the Atlantic.The ceremony was attended by the presidents of Argentina, Uruguay and Paraguay, along with Brazil’s foreign minister, representing Mercosur’s largest economy.For the EU, the agreement strengthens its footprint in a resource-rich region that has become a focal point of competition between Washington and Beijing. For Mercosur members, the deal promises expanded access to European markets for agricultural products, while reinforcing their position as global trade partners beyond any single power centre.The accord still faces ratification processes within individual EU member states and Mercosur countries, but Saturday’s signing marks the most decisive step yet toward reshaping trade relations between Europe and South America in an increasingly fragmented global economy.
Trade breakthrough: EU, Mercosur sign landmark free trade pact; 25-year negotiations end amid global tariff tensions – The Times of India
