More information soon.
The contract signing ceremony began at 4.30 p.m. Polish time in the capital of Paraguay. This country has held the presidency of Mercosur since the beginning of the year.
– We are creating the largest free trade zone in the world, a market worth almost 20 percent. world GDP. We provide countless opportunities to our 700 million citizens, said the head of the European Commission, Ursula von der Leyen, during the ceremony. She added that she wanted to assure the EU's 450 million inhabitants that this agreement was “good for Europe – for every member state.”
— This agreement sends a very strong signal to the world. We choose fair trade over tariffs, we choose a productive, long-term partnership over isolation, von der Leyen said.
The agreement was signed on behalf of the EU by the European Commissioner for Trade, Marosz Shefczovicz.
When was the trade agreement with Mercosur signed?
How many people are covered by the free trade zone?
Which countries are part of Mercosur?
Who represented the European Union when signing the agreement?
The EU-Mercosur agreement is controversial
Negotiations on the agreement between the EU and the Mercosur bloc of countries – Argentina, Brazil, Paraguay and Uruguay – lasted 25 years, but they accelerated significantly in 2025. At the beginning of January this year, the majority of member states agreed to sign the agreement. Poland, France, Austria, Ireland and Hungary were against.
The European Commission sees the agreement with Mercosur (Argentina, Brazil, Paraguay and Uruguay) as an opportunity to open South American markets to industrial goods such as cars, machines and textiles. Currently, they are subject to tariffs of 35%, which makes trade difficult for European producers.
The part of the agreement concerning agriculture arouses the greatest emotions. The finalization of work on the trade agreement was accompanied by protests by farmers across Europe, including Polish farmers. They fear that the EU market will be flooded with cheaper food from Mercosur, especially meat. European farmers consider it unfair, among other things: the fact that, on the one hand, the EU imposes high standards on its own producers, and on the other hand, it opens itself to imports from countries that do not have to comply with such restrictions.
Concerns about opening the EU market to agricultural products from South America led to opposition from some European countries. Poland, France, Austria, Ireland and Hungary voted against the agreement.
