The EU and Mercosur signed a landmark free trade agreement on Saturday in Asunción, Paraguay – the largest deal Brussels has ever concluded – covering 700,000 million citizens.
European Commission President Ursula von der Leyen received the green light on 9 January to sign the deal, more than 25 years in the making. A majority of EU countries backed the agreement – despite opposition from France and Poland.
“We choose fair trade over tariffs, we choose a productive, long-term partnership over isolation, and above all, we intend to deliver real and tangible benefits to our peoples and companies,” she said at the signing ceremony.
Von der Leyen stressed the geopolitical importance of the agreement. “When two regions like ours speak with one voice on global issues, the world will be listening.”
The agreement was sealed at the Banco Central del Paraguay, the same location where the Treaty of Asunción was signed in 1991, establishing the creation of the Mercosur bloc between Argentina, Brazil, Paraguay and Uruguay. European Council President António Costa also attended the ceremony.
From the Mercosur side, Paraguay’s President Santiago Peña, Bolivia’s Rodrigo Paz, Argentina’s Javier Milei, and Uruguay’s Yamandú Orsi participated in the signing, as well as Panama’s President José Raúl Mulino, an associated member of Mercosur.
Von der Leyen and the EU Trade Commissioner Maroš Šefčovič travelled to Brazil earlier on Friday to meet President Lula da Silva, who did not attend the ceremony on Saturday and was represented by his foreign affairs minister.
Farmers’ protests against the deal have taken place across Europe in recent weeks and are set to continue on Tuesday, with 5000 farmers and 1000 tractors expected at the seat of the European Parliament in Strasbourg.
A crucial Parliament vote that could challenge the deal at the EU’s Court of Justice will take place on Wednesday.
This article will be updated.
(vib)