Finance
EU and Mercosur sign trade deal after 25 years of negotiations
Published by Global Banking & Finance Review®
Posted on January 17, 2026
1 min readLast updated: January 19, 2026
Quick Summary
The EU and Mercosur have signed a historic trade deal, concluding 25 years of negotiations. The agreement now awaits ratification from the European Parliament and Mercosur member countries.
EU and Mercosur sign trade deal after 25 years of negotiations
By Daniela Desantis and Philip Blenkinsop
ASUNCION, Jan 17 (Reuters) - Top officials from the EU and the South American bloc Mercosur signed a free trade agreement on Saturday in Paraguay, paving the way for the European Union's largest ever trade accord after 25 years of negotiations.
The agreement, which has been highly contested in Europe, must now gain the consent of the European Parliament. It also must be ratified by legislatures of Mercosur members Argentina, Brazil, Paraguay and Uruguay, which is expected to be a smoother process.
(Reporting by Daniela Desantis in Asuncion, Philip Blenkinsop in Brussels, and Brendan O'Boyle in Mexico City; Editing by Rod Nickel)
Key Takeaways
- •EU and Mercosur sign a historic trade deal.
- •The agreement concludes 25 years of negotiations.
- •The deal is the EU's largest trade accord.
- •Ratification required by European Parliament and Mercosur members.
- •The agreement is expected to pass smoothly in Mercosur countries.
Frequently Asked Questions about EU and Mercosur sign trade deal after 25 years of negotiations
1What is the European Parliament?
The European Parliament is the directly elected legislative body of the European Union, responsible for making decisions on EU laws, budgets, and policies, including trade agreements.
2What is Mercosur?
Mercosur, or the Southern Common Market, is a regional trade bloc in South America that includes Argentina, Brazil, Paraguay, and Uruguay, aimed at promoting free trade and economic integration.
3What is ratification?
Ratification is the formal approval process by which a legislative body, such as a parliament, agrees to a treaty or agreement, making it legally binding.
