EU Seals Free Trade Deal With South America After 25 Years

The European Union (EU) has finalised a free trade deal with South American countries 25 years after talks began, despite opposition from European farmers. The agreement with Mercosur, including Brazil, Argentina, Paraguay and Uruguay, now requires European Parliament approval.

Brazilian President Luiz Inacio Lula da Silva called it a «historic day for multilateralism». The deal comes amid U.S. tariffs and recent military actions in Venezuela.

EU Commission President Ursula von der Leyen said it would bring «meaningful benefits to consumers and businesses, on both sides». Critics warn that cheaper imports could harm European farmers producing beef, poultry and sugar.

Farmers staged last-minute protests in France and Belgium. Von der Leyen said safeguards had been introduced to protect livelihoods.

The deal also aims to support climate action by halting deforestation and securing raw materials for renewable energy. The European Commission expects it to save EU companies €4 bn a year in export duties.

Former EU trade commissioner Cecilia Malmstrom said parts of the deal could be suspended if Mercosur countries fail to meet environmental commitments, calling it a strong geopolitical signal.

A broad majority of EU states back the deal, but parliamentary approval is still required. Analysts say the economic impact will be modest, with EU output rising just 0.05% and benefits phasing in over 15 years.