
The European Union and South America’s Mercosur bloc signed their long-negotiated association and free trade agreement on Saturday in Paraguay, with Argentina’s President Javier Milei attending the ceremony and Brazil’s Luiz Inácio Lula da Silva absent, represented instead by his foreign minister.
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On January 17, 2026, the Mercosur bloc and the European Union (EU) will formalize a comprehensive association and free trade agreement in Asunción, Paraguay, marking the culmination of nearly 26 years of negotiations, according to international and regional news outlets.

Brazil has enacted two laws formalizing the transfer of military aircraft and equipment to Uruguay and Paraguay, as part of an initiative to upgrade operational capabilities of neighboring countries and enhance regional security, Agência Brasil reported.

The Paraguayan Medical Circle (CPM) has issued a formal demand for strict linguistic competency requirements for all foreign medical students. The guild insists that non-native speakers must obtain official certifications in Spanish and Guaraní as a prerequisite for enrollment and clinical practice.

Asunción's Silvio Pettirossi International Airport has been cleared by the United States government to resume direct commercial flights, marking a significant milestone for Paraguayan aviation.

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.

Paraguayan President Santiago Peña celebrated Washington's intervention in Caracas to hold Bolivarian leader Nicolás Maduro Moros accountable before a New York court of law.

Paraguay's Grupo Vierci has signed a binding agreement to acquire 100% of GDN Uruguay's shares, encompassing key retail brands including Supermercados TaTa, Farmacia San Roque, BAS apparel, MultiAhorro Hogar home goods, and wholesale chain Frontoy.

The Central Bank of Paraguay (BCP) announced on Tuesday that the country has concluded 2025 with an annual inflation rate of 3.1%, successfully meeting its target range and demonstrating a trend of continued macroeconomic stability.

The 67th Southern Common Market (Mercosur) Summit concluded on Saturday in Foz do Iguaçu, with Paraguay officially assuming the bloc's pro-tempore presidency from host Brazil. Amid a backdrop of geopolitical friction and trade delays, Paraguayan President Santiago Peña outlined a pragmatic six-month agenda focused on economic openness and regional connectivity.