Von der Leyen for signing the EU-Mercosur settlement in Brazil | EUROtoday

As of: January 17, 2026 12:18 a.m

After greater than 25 years of negotiations, the EU and the South American Mercosur states will right this moment create one of many world’s largest free commerce areas. Before the signing, EU Commission chief von der Leyen was obtained in Brazil.

Before signing the free commerce settlement with the South American Mercosur states, EU Commission President Ursula von der Leyen met with President Luiz Inácio Lula da Silva in Brazil.

At the assembly in Rio de Janeiro, she mentioned the settlement despatched a powerful sign of “partnership and openness.” This is how “real prosperity” is created. “If we deliver with the trade agreement, it will be a success story – written by 700 million people,” mentioned von der Leyen.

“Good for him multilateralism”

Lula mentioned the brand new partnership goes past the financial dimension: “The EU and Mercosur share values ​​such as respect for democracy, the rule of law and human rights.” The settlement is subsequently “particularly good for the democratic world and for multilateralism”.

According to many observers, the aim of the assembly between Lula and von der Leyen in Brazil was to clean issues over ARD correspondent Xenia Böttcher. The contract ought to even have been signed in Brazil in December.

But the EU determined to postpone the conclusion of the settlement – due, amongst different issues, to resistance from France, Poland and Italy. Germany was one of many driving forces for this settlement, not least due to the harder commerce relations with China and the USA.

More than 25 years of negotiations

After greater than 25 years of negotiations, the settlement is meant to create one of many world’s largest free commerce zones. It is meant to cut back commerce limitations, tariffs and taxes between the European Union and Argentina, Brazil, Paraguay and Uruguay and thus simplify the motion of products.

While Europeans export, amongst different issues, vehicles and chemical merchandise throughout the Atlantic, the Mercosur international locations primarily ship agricultural merchandise and uncooked supplies to Europe. According to the Commission’s calculations, the settlement would save round 4 billion euros in customs duties yearly.

Signing in Paraguay

Von der Leyen will now signal the settlement in Paraguay. Paraguay’s President Santiago Peña and Uruguay’s President Yamandú Orsi are additionally participating. It was unclear till not too long ago that Argentine President Javier Milei would participate.

Following the signing, the 4 South American states and the European Parliament should ratify the textual content. Negotiations on the Mercosur settlement had been concluded on the finish of final yr. Finally, every week in the past, the vast majority of the 27 member states voted in favor of the settlement.