MercoPress. South Atlantic News Agency

EU-Mercosur deal to be signed in Asunción on Jan. 17

Mercosur Presidents do not need to attend the signing, but they will most likely be there, Lubetkin foresaw

The Free Trade Agreement (FTA) between the Southern Common Market (Mercosur) and the European Union (EU) will be signed in Paraguay on Saturday, Jan. 17, Argentine Foreign Minister Pablo Quirno confirmed on Friday, following the decisive round of voting in Brussels, where France and its allies failed to reach the minimum number to topple the initiative.

“On January 17 in Paraguay, we will sign a historic and ambitious agreement between both blocs,” Quirno posted on X.

Leaders across South America hailed the decision as a triumph of diplomacy over decades of protectionist friction. “A historic day for multilateralism,” Brazilian President Luiz Inácio Lula da Silva posted on social media. “The decision endorsed by the European side unites two blocs that, together, account for 718 million people and one of the largest free trade treaties in the world.”

In Montevideo, Uruguayan Foreign Minister Mario Lubetkin confirmed that President Yamandú Orsi will travel to Asunción for the ceremony, describing the approval as an “extraordinary and fabulous” breakthrough that signals the “definitive end to 25 years of discussion.”

”Although the presidents do not have to attend (the signing), my feeling is that, given the importance of the event, the presidents will be there,“ Lubetkin noted.

The agreement aims to create a massive integrated market, removing tariffs on 92% of Mercosur exports to the EU and 91% of European exports to South America.

As the current holder of the Mercosur pro tempore presidency, Paraguay will host the signing. President Santiago Peña described the pact as ”the largest free trade agreement in the history of humanity,“ emphasizing that it represents an ”enormous opportunity“ for Paraguayan industries to gain global scale.

Meanwhile, Quirno highlighted that the deal grants Mercosur preferential access to the world's third-largest economy. ”99% of Mercosur's agricultural exports will benefit,“ he noted, forecasting a major boost for livestock, soybean, and honey producers.

Diplomatic sources indicate that the return of Donald Trump to the White House and escalating trade tensions with China acted as a catalyst for the final approval.

Agathe Demarais, a researcher at the European Council on Foreign Relations, noted that the agreement is ”the best response to US tariffs and growing global protectionism.” Beyond agriculture, the deal secures European access to critical minerals, including 20% of the world’s graphite and nickel in Brazil and the world’s third-largest lithium reserves in Argentina.

While the executive branches are ready to sign, the battle now moves to the European Parliament. The treaty will undergo a rigorous review in the coming weeks. Approximately 150 MEPs have already threatened legal action or organized resistance to block ratification.

To bypass immediate delays, the EU Council noted that parts of the agreement —specifically those regarding political dialogue and cooperation— may be applied provisionally while the full ratification process continues.