European Union and Mercosur bloc of South American nations sign landmark free trade agreement

The European Union and the Mercosur bloc of South American countries have formally signed a long-sought landmark free trade agreement

ASUNCIÓN, Paraguay — The European Union and the Mercosur bloc of South American countries formally signed a long-sought landmark free trade agreement on Saturday, capping more than a quarter-century of torturous negotiations to strengthen commercial ties in the face of rising protectionism and trade tensions around the world.

The signing ceremony in Paraguay’s humid capital of Asunción marks a major geopolitical victory for the EU in an age of American tariffs and surging Chinese exports, expanding the bloc’s foothold in a resource-rich region increasingly contested by Washington and Beijing.

It also sends a message that South America keeps diverse trade and diplomatic relations even as U.S. President Donald Trump declares dominance in the Western Hemisphere.

European Commission President Ursula von der Leyen, who head’s the EU’s executive branch, said that “the geopolitical importance of this agreement cannot be overstated” amid revived skepticism about the benefits of free trade.

“We choose fair trade over tariffs. We choose a productive long-term partnershi