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The EU and South American trade federation Mercosur signed a historic free trade agreement. We are being passed by.
World News
European Union and Mercosur bloc of South American nations sign landmark free trade agreement
By NAYARA BATSCHKE and ISABEL DEBRE
Updated 7:25 PM CST, January 17, 2026
ASUNCION, Paraguay (AP) — The European Union and the Mercosur bloc of South American countries formally signed a long-sought free trade agreement on Saturday, strengthening commercial ties in the face of rising protectionism and trade tensions around the world.
The signing ceremony in Paraguay’s capital, Asuncion, caps more than a quarter-century of torturous negotiations. It 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.
It also sends a message that South America is keeping a range of trade and diplomatic relationships even as U.S. President Donald Trump makes an aggressive push for geopolitical dominance of the Western Hemisphere.
World News
European Union and Mercosur bloc of South American nations sign landmark free trade agreement
By NAYARA BATSCHKE and ISABEL DEBRE
Updated 7:25 PM CST, January 17, 2026
ASUNCION, Paraguay (AP) — The European Union and the Mercosur bloc of South American countries formally signed a long-sought free trade agreement on Saturday, strengthening commercial ties in the face of rising protectionism and trade tensions around the world.
The signing ceremony in Paraguay’s capital, Asuncion, caps more than a quarter-century of torturous negotiations. It 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.
It also sends a message that South America is keeping a range of trade and diplomatic relationships even as U.S. President Donald Trump makes an aggressive push for geopolitical dominance of the Western Hemisphere.
