1. Skip to content
  2. Skip to main menu
  3. Skip to more DW sites

EU, Mercosur sign landmark trade deal

Rosie Birchard in Asuncion | Santi Carneri
January 17, 2026

After 26 years of talking, the EU and Mercosur officials have tied the trade deal knot in Paraguay.

https://p.dw.com/p/56zjo

The EU-Mercosur pact cuts tariffs, boosting trade in cars, minerals and meat, but has drawn criticism from climate activists and some European farmers. Reactions in Asuncion are mixed, yet leaders argue the deal sends a strong geopolitical signal despite ongoing controversy.