EU Members Approve Historic Trade Deal with Mercosur, Forming a 700-Million-Person Market

On January 9, 2026, representatives of EU member states voted to approve the long-negotiated free trade agreement with the Mercosur bloc, paving the way for its formal signing. This historic deal, concluding over two decades of talks, aims to establish a vast free trade area encompassing more than 700 million people by eliminating tariffs on most goods. The European Commission hailed it as a "win-win" agreement crucial for expanding exports and supporting the European economy.

To secure approval, the Commission introduced safeguards like enhanced import controls and a crisis fund to protect EU farmers concerned about South American agricultural competition. Despite opposition from France and Hungary and farmer protests, the agreement secured the necessary majority, marking a key EU strategic move towards trade diversification. It now awaits final ratification by the European Parliament.