By Micah Jonah
January 17, 2026
Brazilian President, Luiz Inacio Lula da Silva announced on Friday that the European Union and the South American trade bloc Mercosur are poised to sign a historic free trade agreement this weekend, concluding 25 years of negotiations.
Speaking alongside European Commission President, Ursula von der Leyen in Rio de Janeiro, Lula said the deal will create new opportunities for trade and investment for both parties.
Top EU officials are scheduled to travel to Paraguay on Saturday to formalize the agreement, marking the EU’s largest-ever trade accord. Lula is not expected to attend the signing ceremony.
The agreement is expected to boost economic ties, reduce tariffs, and facilitate greater market access between the EU and Mercosur member states, which include Brazil, Argentina, Uruguay, and Paraguay.
Officials noted that while the pact opens doors for trade expansion, implementation will require careful coordination to meet regulatory and environmental standards across both regions.
