MERCOSUR and the European Union signed an Association Agreement (APAE) and an Interim Trade Agreement (ATI) this Saturday, January 17, 2026, in Asunción, Paraguay. This step strengthens economic, diplomatic, and geopolitical relations between the two regions in a global context marked by the rise of bilateral tariff policies and a diminished role for multilateral trade. While the signing does not yet imply formal consent, it authenticates the agreements and reflects the states' commitment to moving toward ratification.
The signing ceremony was led by the European Commissioner for Trade, Maroš Šefčovič, and the foreign ministers of the MERCOSUR member states: Pablo Quirno (Argentina), Mauro Vieira (Brazil), Rubén Ramírez (Paraguay), and Mario Lubetkin (Uruguay), at the headquarters of the Central Bank of Paraguay, before hundreds of guests and viewers connected virtually. Presidents Javier Milei (Argentina), Santiago Peña (Paraguay), and Yamandú Orsi (Uruguay) participated as witnesses of honor, while Brazil was represented by its Minister of Foreign Affairs. The European delegation included Ursula von der Leyen and António Costa. The presidents of Bolivia, Rodrigo Paz, and Panama, José Raúl Mulino, also witnessed the signing. Bolivia is in the final stages of its accession as a full member of MERCOSUR, while Panama recently joined as an associate member.
Main provisions
According to a joint statement from the MERCOSUR Secretariat, the agreements will allow both blocs—which together represent 31 countries and nearly a quarter of global GDP—to gradually reduce or eliminate tariffs on approximately 90% of their imports and exports. This will expand MERCOSUR's access to the European Union, the world's third-largest economy, with 450 million people and nearly 15% of global GDP. Specifically, the EU will eliminate tariffs on 92% of MERCOSUR's exports, valued at approximately US$61.000 billion, and grant preferential access to another 7,5%, equivalent to US$4.700 billion.
The official ceremony was appreciated by all the leaders present. In particular, the President of ArgentinaJavier Milei highlighted its importance:The signing of this agreement is not an end point, but a starting point. Argentina will move decisively towards its ratification, and we hope that the European Parliament will do the same as soon as possible.”
In this context, Argentina emphasized that MERCOSUR serves as a springboard for going “further” and outlined a more dynamic external trade agenda for 2026. The country proposes rethinking instruments, accelerating processes, and adapting negotiation frameworks to the pace of the global economy, under its own multi-agreement strategy that includes strengthening trade and investment ties. Furthermore, Argentina invited its MERCOSUR counterparts to share this openness, while finalizing a trade and investment agreement with the United States, expanding cooperation with Panama, El Salvador, the Dominican Republic, and Ecuador, concluding negotiations with the United Arab Emirates, and expanding its presence in Asia with countries such as Vietnam, India, and Indonesia, as well as with Canada, with a possible future expansion to Japan.
With the signing carried out in Paraguay, and according to the joint statement, the MERCOSUR Member States reaffirm their commitment to regional integration, development and international cooperation, concluding a negotiation process of more than 26 years with Europe and beginning a new stage of work within the countries of the bloc.
🤝 Joint Statement below:
https://www.mercosur.int/comunicado-conjunto-sobre-la-firma-del-acuerdo-de-asociacion-entre-el-mercosur-y-la-union-europea
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