EU and South America’s Mercosur bloc sign landmark free trade agreement

The signing ceremony in Paraguay’s humid capital of 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.

Although the accord eliminates more than 90% tariffs on goods and services between the European and Mercosur markets, some tariffs will progressively be cut over 10-15 years and key farm products like beef will be limited by strict quotas in a bid to assuage European farmers’ fears.

Those quotas, as well as safeguard measures and generous EU subsidies to cash-strapped farmers, pushed agricultural powerhouse Italy across the line earlier this month. 

France, however, remains opposed to the accord.

CNN 17 January 2026

https://edition.cnn.com/2026/01/17/americas/mercosur-eu-trade-agreement-latam-intl

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