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The world's largest free trade area is created, the EU and Mercosur sign the historic agreement

2026-01-18 19:19:42Biznes SHKRUAR NGA REDAKSIA VOX
EU and Mercosur sign historic agreement

After 25 years of lengthy and often deadlocked negotiations, the European Union and the Mercosur countries have signed a historic free trade agreement in Asunción, Paraguay. The move creates the world's largest free trade area, bringing together 750 million consumers and eliminating over 90% of customs tariffs.

European Commission President Ursula von der Leyen described this signing as a strong signal to the world and a legacy for future generations, while other European leaders emphasized that, at a time when some countries are erecting walls and imposing tariffs, Europe is building bridges of cooperation.

Latin American leaders also welcomed the agreement enthusiastically, seeing it as a victory for diplomacy over isolation. Brazilian President Lula da Silva called it a response to isolationist policies, while Argentine President Javier Miel took the opportunity to publicly praise Italian Prime Minister Giorgia Meloni's role in reaching an agreement within the European Council.

According to Brussels' forecasts, the benefits will be immediate, with a significant increase in trade exchanges, especially in the food sector, where hundreds of typical European products will be protected from imitations.

However, the road to full implementation remains steep and fraught with political obstacles. European farmers have lined up against the deal, warning of mass protests with thousands of tractors in Strasbourg, as they fear competition from South American products.

As tensions rise in the streets, the battle will also move to the European Parliament. A request to refer the agreement to the European Court of Justice is expected to be voted on next week, which could delay its entry into force for another two years, putting a hold on a process that began at the end of the last century.


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