Following 26 years of negotiations and a string of setbacks that threatened to scupper it, representatives of the Mercosur countries and the European commission signed the EU-Mercosur trade deal at a ceremony in Asunción, Paraguay, on Saturday. However, the deal has faced opposition due to fears about price suppression and possible harm to South America’s local industries. Argentine President Javier Milei speaks at signing ceremony for EU-Mercosur Association Agreement in Asunción, Paraguay, January 17 2026. President Yamandú Orsi of Uruguay, European Council President António Costa, President Rodrigo Paz of Bolivia, and President José Mulino of Panama were also on stage. While popularly described as a trade deal, the free trade provisions form part of a broader association agreement.

Source: Bueno Aires Herald January 17, 2026 21:55 UTC