EU and Mercosur sign historic trade and partnership agreements

On 17 January, the European Union and the Mercosur countries signed a Partnership Agreement (EMPA) and an Interim Trade Agreement (iTA), marking a historic step forward in relations between the two regions. The deal creates one of the largest free trade areas in the world, covering around 700 million consumers and potentially increasing EU exports to Mercosur by an estimated 39%. It also strengthens geopolitical cooperation and support for multilateralism, with expected benefits for economic growth, employment, environmental sustainability, and the green and digital transitions. The agreements must now go through the respective ratification processes in the EU and the Mercosur countries before they can fully enter into force.