Overview
- Leaders signed the agreement in Paraguay, creating a market spanning more than 700 million people and roughly 30% of global GDP.
- The text removes tariffs on over 90% of bilateral trade and sets duty-reduced quotas, including an annual 99,000‑tonne allowance for beef from Mercosur countries.
- EU exporters of cars, machinery, wines and cheeses are set to gain greater access, while South American producers receive expanded entry for beef, poultry, sugar, rice, honey and soy.
- Farm unions across Europe maintain strong opposition, with fresh protests planned and environmental NGOs warning of increased deforestation linked to expanded cattle production.
- Ursula von der Leyen cast the deal as a signal for rules-based trade in a period of rising tariffs, while critics in both blocs warn of uneven sectoral impacts and possible job losses.