ASUNCION (PARAGUAY) – EU chief Ursula von der Leyen on Saturday hailed the choosing of “fair trade over tariffs” as the European bloc prepared to sign a major trade deal with South America’s Mercosur nations that has been 25 years in the making.

“We choose fair trade over tariffs, we chose a productive long-term partnership over isolation,” Von der Leyen said at the ceremony in Asuncion, Paraguay.

Paraguay’s president Santiago Pena also praised the treaty as “a clear signal in favour of international trade” in “a global scenario marked by tensions.”
European Council head Antonio Costa said the deal sent “a message of defence of free trade, based on rules, of multilateralism and international law as the basis for relations between countries and regions.”

He said it stood in contrast to “the use of trade as a geopolitical weapon.”

The long-awaited agreement comes amid the sweeping use of tariffs and trade threats by US president Donald Trump’s administration, which has sent countries scrambling for new partnerships.

Together, the EU and Mercosur account for 30% of global GDP and more than 700 million consumers.

The treaty — which still needs to be approved by the EU parliament and ratified by each Mercosur nation — eliminates tariffs on more than 90% of bilateral trade.

It is expected to come into force by the end of 2026. 

– Nampa/AFP