EU and Mercosur bloc of South American nations sign trade deal to end quarter-century of talks, just as Trump hits Europe with new tariffs | Fortune

"The European Union and the Mercosur bloc of South American countries formally signed a long-sought landmark free trade agreement on Saturday, capping more than a quarter-century of torturous negotiations to strengthen commercial ties in the face of rising protectionism and trade tensions around the world. The signing ceremony in Paraguay's capital, Asunción, marks a major geopolitical victory for the EU in an age of American tariffs and surging Chinese exports, expanding the bloc's foothold in a resource-rich region increasingly contested by Washington and Beijing."

"Promoted by South America's renowned grass-fed cattle-raising countries and Europe's industrial interests, the accord's gradual elimination of more than 90% of tariffs creates one of the world's largest free trade zones and makes shopping cheaper for more than 700 million consumers. Geopolitical undertones European Commission President Ursula von der Leyen, who heads the EU's executive branch, portrayed the deal as a bulwark against the disruptive policies of the Trump administration. "It reflects a clear and deliberate choice: We choose fair trade over tariffs. We choose a productive long-term partnership over isolation," von der Leyen declared in a veiled rebuke to Trump's trade policies at the ceremony, which got underway as Trump announced 10% tariffs on eight European nations over their opposition to American control of Greenland."

The European Union and Mercosur formally signed a landmark free-trade agreement in Asunción, Paraguay, concluding over 25 years of negotiations. The pact gradually eliminates more than 90% of tariffs, creating one of the world’s largest free trade zones and reducing prices for over 700 million consumers. Mercosur members include Argentina, Brazil, Paraguay, Uruguay, with Bolivia eligible to join and Venezuela excluded. The deal reflects competing geopolitical interests as the EU seeks deeper ties amid U.S. tariffs and rising Chinese exports. European leaders framed the agreement as a commitment to fair trade and long-term partnership with South America.

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