EU, MERCOSUR ink partnership, trade deals in Asunción

The EU–MERCOSUR Partnership Agreement (EMPA) and the Interim Trade Agreement (iTA) were signed on January 17 in the Paraguayan capital Asunción, the European Commission (EC) announced, describing the event as a “historic milestone in relations between the two regions.”

“European Commission President Ursula von der Leyen, European Council President António Costa, and the leaders of the MERCOSUR countries attended the signing of the EU–MERCOSUR Partnership Agreement and the EU–MERCOSUR Interim Trade Agreement by EU Trade Commissioner Maroš Šefčovič and his counterparts from the MERCOSUR countries,” the EC said in a statement, Caliber.Az reports per foreign media.

“Today, two like-minded regions are opening a new chapter of opportunity for more than 700 million citizens. Through this mutually beneficial partnership, we will both gain economically, diplomatically, and geopolitically. Our companies will expand exports, drive economic growth, and create jobs. We will support each other in our transitions to green and digital economies. And our message to the rest of the world is clear: the EU and MERCOSUR choose cooperation over competition and partnership over polarization,” von der Leyen said.

Brussels noted that the trade agreement signed in Paraguay will create “one of the largest free trade areas in the world.”

According to the European Commission, the agreement will open up significant new trade opportunities for companies across the EU, leading to a 39% increase in annual EU exports to MERCOSUR (approximately €49 billion) and supporting hundreds of thousands of jobs within the bloc.

“The agreement also sends a strong geopolitical signal, demonstrating the shared commitment of the EU and MERCOSUR to multilateral cooperation and a rules-based international order. At a time of global uncertainty and growing fragmentation, this agreement highlights the value of cooperation, dialogue, and international partnership,” the EC statement said.

At the same time, the EU–MERCOSUR free trade agreement continues to be viewed controversially within EU member states, triggering strong protests from European farmers who fear they will face unfair competition due to an influx of South American products. Their concerns center on the possibility that Europe will be flooded with cheaper imports that are not subject to the same strict quality standards imposed on EU agricultural producers.

The position of the European agricultural sector is supported by some members of the European Parliament, which has not yet ratified the signed agreements. MEPs are scheduled to vote on January 21 on a request to the Court of Justice of the European Union for an opinion on whether the EU–MERCOSUR agreements comply with EU law.

In addition, the European Parliament will vote on January 22 on a motion of no confidence in the European Commission in connection with the trade agreement.

By Khagan Isayev