Firma del Acuerdo UE-MERCOSUR (foto: MERCOSUR)
The European Union and MERCOSUR formalised the signing of their Association Agreement and an Interim Trade Agreement on 17 January 2025, consolidating one of the most significant bi-regional understandings of recent decades. The pact represents a decisive step towards deepening economic, political and strategic ties between Europe and Latin America at a time of international uncertainty and fragmentation.
The partnership brings together a market of around 700 million people and a combined GDP equivalent to nearly 25% of the global economy, creating one of the largest free trade areas worldwide. From a European perspective, the agreement will significantly expand exports to MERCOSUR and generate new opportunities for businesses and workers, while for South American countries it provides a stable framework for access to one of the world’s leading markets.
The signing ceremony was attended by the highest authorities of both blocs, including the President of the European Commission, Ursula von der Leyen; the President of the European Council, António Costa; the President of Argentina, Javier Milei; the President of Paraguay, Santiago Peña; and the President of Uruguay, Yamandú Orsi. The President of Bolivia, Rodrigo Paz, and the President of Panama, José Raúl Mulino, were also present.
During the event, leaders highlighted the political value of the agreement as a clear signal of commitment to multilateralism, common rules and international cooperation. They also stressed that the understanding goes beyond trade, serving as a platform to strengthen cooperation in areas such as sustainable development, the green and digital transitions, security, and joint engagement on the global stage.
From MERCOSUR, the President of Paraguay, Santiago Peña, acting as the bloc’s rotating chair, described the signing as a success for regional diplomacy and a reaffirmation of South America’s integrative vocation, emphasising the concrete benefits the agreement can deliver to citizens in both regions.
The President of the European Commission, Ursula von der Leyen, stated that “with this mutually beneficial partnership, we will both come out ahead—economically, diplomatically and geopolitically”.
This agreement sends a powerful signal to the world and reflects a clear and deliberate choice: we opt for fair trade over tariffs, for a long-term productive partnership and, above all, for delivering real and tangible benefits to our peoples and businesses.
Ursula von der Leyen, President of the European Commission
If 25 years ago we already clearly recognised the importance of the partnership between our two regions, today it is even more evident that its relevance goes beyond the economic sphere, beyond the figures—impressive though they may be. With this agreement, we send a clear message to the world: a message in defence of free, rules-based trade, multilateralism and international law as the foundation of relations between countries and regions.
António Costa, President of the European Council
Today we are brought together by an event of great political and economic significance for all the members of this bloc and, in all likelihood, for the entire world. After 25 long years of negotiations, we have finally signed the free trade agreement between MERCOSUR and the European Union, perhaps the greatest achievement attained by MERCOSUR since its creation.
Javier Milei, President of Argentina
From MERCOSUR, we want this agreement to benefit its main beneficiaries: the millions of European and Latin American citizens who, following its implementation, will see substantial improvements in their lives.
Santiago Peña, President of Paraguay
In a world marked by tensions and by the erosion of certainties that for decades shaped global politics and trade, this agreement takes on particular significance. Not only because it constitutes the largest comprehensive trade partnership in the world, but because it reaffirms a clear decision: to place our trust in rules at a time of volatility and constant change.
Yamandú Orsi, President of Uruguay
The agreement includes commitments on sustainable development, climate action and labour rights, with explicit references to the implementation of the Paris Agreement and the objective of progressing towards climate neutrality. It also provides mechanisms to protect sensitive sectors and ensure high standards in trade exchanges.
Following the signing, the ratification phase will now begin in accordance with the internal procedures of each party. On the European side, the Association Agreement will require approval by the Member States, while the Interim Trade Agreement will follow the ratification process at European Union level. Once these steps are completed, the understanding will lay the foundations for a closer bi-regional relationship, with long-term impacts for Europe, Latin America and the Caribbean.