The European Commission confirmed that President Ursula von der Leyen will sign the EU–Mercosur free trade agreement on Saturday 17 January, after the EU approved advancement of the deal despite objections from France, Hungary and Poland. Supporters argue the pact will boost exports and deepen ties with South America, while farmers and some domestic political actors warn of negative impacts on agriculture and standards. The move has been framed by some commentators as a rare act of multilateral diplomacy amid broader geopolitical tensions.
European Union confirms it will sign Mercosur treaty on Saturday
Sunday, 11 January 2026RSS
Context & Explainers
Mercosur (Mercado Comum do Sul) is South America's largest trade bloc, comprising Brazil, Argentina, Uruguay, and Paraguay as full members. It has been negotiating a landmark free trade agreement with the European Union for over two decades.
The EU-Mercosur deal matters for Portugal because of the country's deep historical, cultural, and economic ties with Brazil — Portugal's largest non-EU trading partner and home to the biggest Portuguese diaspora community. A deal would reduce tariffs on European exports (including Portuguese wine, olive oil, and textiles) while opening EU markets to South American agricultural products (beef, soy, sugar, ethanol).
Portuguese farmers, particularly in the beef and dairy sectors, have expressed concern about competition from lower-cost South American producers. Environmental groups have criticized the deal over deforestation risks in the Amazon. The agreement requires ratification by all EU member states and the European Parliament, making its passage politically complex.
