Signing of the MERCOSUR–European Union Partnership Agreement

The signing of the MERCOSUR–European Union Partnership Agreement, today (January 17) in Asunción, represents a historic milestone in relations between the two blocs. The result of more than 26 years of negotiations, the Agreement will create a free trade area covering approximately 720 million people and a Gross Domestic Product (GDP) of more than $22 trillion. In terms of population and the size of the economies involved, it is one of the largest bilateral free trade agreements in the world. Beyond its economic and commercial dimension, the Agreement reaffirms the partnership between the two regions, grounded in shared values and interests—such as the defense of democracy, multilateralism, and human rights.

The MERCOSUR–European Union Partnership Agreement reflects the efforts by President Lula’s administration to expand and diversify markets and to foster employment, income, and development for the country. In addition to the Agreement with the European Union, other agreements have been signed since 2023 with Singapore and the European Free Trade Association (EFTA), comprising Iceland, Liechtenstein, Norway, and Switzerland. Negotiations outside Latin America are in progress with the United Arab Emirates, Canada, and Vietnam, and efforts are also underway to expand the preferential tariff agreement with India. Alongside this, trade negotiations have been promoted with a number of other strategic partners, including Japan, under which a “Strategic Partnership Framework” was recently established.

The factsheet on the Agreement is available here.