EU, S. American economic bloc Mercosur seal free trade deal on Saturday
European Commission President Ursula von der Leyen defended the decision as a strategic move, calling the agreement a “clear and deliberate choice.” She argued that the EU has decided to “choose fair trade over tariffs,” favoring “a productive long-term partnership over isolation.”
The agreement comes just six months after von der Leyen concluded a separate deal with US President Donald Trump that subjected most EU exports to a 15% tariff. Tensions with Washington have since intensified. Earlier this month, Trump vowed to introduce additional tariffs on eight European NATO countries opposing his bid to acquire Greenland. Those measures are expected to begin with a 10% levy on February 1, increasing to 25% by June, and remaining in force until what Trump has described as a “complete and total purchase” of the Arctic island.
After 25 years of negotiations, the Mercosur pact secured backing from a majority of EU governments, even as France and Poland voiced opposition. The deal has been particularly controversial among agricultural communities, where fears of being undercut by cheaper imports have fueled widespread protests across Europe.
Further demonstrations are expected in Strasbourg, where thousands of farmers and large numbers of tractors are set to gather outside the European Parliament. Lawmakers are also scheduled to vote on a motion that could refer the agreement to the EU’s top court for legal scrutiny.
EU officials say the agreement will establish the largest free trade area in the world, encompassing more than 700 million consumers. Mercosur already ranks as the EU’s second-largest trading partner for goods. In 2024 alone, trade between the two sides exceeded €111 billion, reflecting growth of more than 36% compared to a decade earlier.
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